With billionaire entrepreneur Elon Musk gears up to take SpaceX public in a blockbuster IPO, a report has emerged, hinting at its possible merger with Tesla.
SpaceX filed its IPO papers with the US Securities and Exchange Commission on May 20, 2026. The proposed SpaceX IPO, likely to be the biggest public issue ever, is expected to raise a record $75 billion at a valuation of roughly $1.75 trillion.
Notably, both Tesla and SpaceX already share a list of resources and Musk has discussed with colleagues the possibility of merging the two companies, according to a report by CNBC citing people familiar with the matter, who asked not to be named.
A Tesla employee told the publication that several workers of the EV firm have been expecting such a move for a long time and the topic is openly discussed internally. Meanwhile, a person close to the company said that the two companies have collaborated often due to shared challenges.
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While the operations of Tesla and SpaceX may not appear common, both of the businesses are heavily focused on AI and the talent and computing resources required to build its infrastructure and services. Out of of SpaceX's $10.1 billion in capital expenditures in the first quarter, three-fourth were linked to AI, while Tesla in its latest earnings mentioned that capex will nearly triple this year, touching $25 billion mark.
At present, Musk is apart of both boards, along with venture capitalist Ira Ehrenpreis, founder of DBL Partners. Musk's brother Kimbal, who is currently serving on Tesla's board, was SpaceX director earlier. Additionally, SpaceX board members Antonio Gracias and Steve Jurvetson served on Tesla's board previously, while Charles Kuehmann is vice president of materials engineering for Tesla and SpaceX.
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