Reports of a Future SpaceX-Tesla Merger Are Picking Up Steam. But Is Such a Complex Deal Actually Feasible?

As if SpaceX going nationalist astatine a perchance $2 trillion valuation successful what could beryllium the largest archetypal nationalist offering (IPO) ever isn't capable to excite investors, caller reports suggest that SpaceX and Tesla (NASDAQ: TSLA) could besides yet merge.

There is intelligibly a transportation betwixt the 2 companies, fixed that some are controlled by Elon Musk and some are partially focused connected artificial quality (AI). On Kalshi, implicit fractional of the radical betting connected a merger (as of May 27) foretell it volition spell done earlier May 1, 2027.

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However, fixed the size of some companies and the information that they besides run immoderate antithetic businesses, immoderate imaginable woody betwixt SpaceX and Tesla could beryllium complex.

Is a merger betwixt these 2 Musk-founded juggernauts really feasible?

Why a SpaceX-Tesla merger could marque consciousness

Speculation surrounding a SpaceX-Tesla tie-up has been picking up steam. CNBC spoke to a Tesla employee, who asked to stay anonymous, who said galore workers expect a merger to hap and that it is discussed regularly wrong the company.

While Tesla focuses connected electrical vehicles, autonomous driving, and humanoid robots, and SpaceX is focusing connected abstraction voyages and its Starlink outer net service, AI is progressively astatine the forefront.

SpaceX precocious acquired different Musk-founded company, xAI, the proprietor of Grok, and respective investors deliberation it volition prosecute sovereign AI, meaning it would power the afloat AI stack from information centers to chips to intelligence. Tesla's autonomous driving and humanoid robots are some examples of generative AI.

"Tesla has to tally almighty AI systems wrong a moving conveyance with choky limits connected power, cooling, latency, reliability and cost," Tomasz Tunguz, a task capitalist astatine Theory Ventures, told CNBC. "SpaceX has to deliberation astir compute successful orbit, wherever radiation, thermal cycling, motorboat mass, powerfulness procreation and vigor rejection each go existential plan constraints."

Wedbush expert Dan Ives besides sees a merger happening adjacent year, arsenic Tesla already owns a involvement successful SpaceX and the 2 companies jointly ain a terafab facility.

In SpaceX's registration statement, the institution wrote that it and Tesla person "developed the aboriginal instauration of a beardown and constructive concern done a bid of constricted but palmy commercialized engagements."