Entrepreneur Chamath Palihapitiya believes that a merger between SpaceX and Tesla would redefine modern corporate structure and resemble a 21st century Berkshire Hathaway.
“A merger between SpaceX and Tesla would instantly create the Berkshire Hathaway of the modern century. The capital raising and operational efficiencies if both were together are obvious,” the Social Capital founder said in an X post on Friday.
According to Palihapitiya, a single equity tied to Elon Musk's companies would be highly attractive for investors.
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“If this were to happen, it would also bring us one step closer to having one equity instrument for all things Elon, which many would want to buy,” he said.
A merger between SpaceX and Tesla would instantly create the Berkshire Hathaway of the modern century.
— Chamath Palihapitiya (@chamath) January 29, 2026
The capital raising and operational efficiencies if both were together are obvious.
If this were to happen, it would also bring us one step closer to having one equity…
Palihapitiya's comments come amid reports of a possible merger between SpaceX and xAI. As per a Reuters report, SpaceX is exploring deals with other companies owned by Elon Musk before a major IPO. The merger is aimed at combining SpaceX's rocket busines, Starlink, X and Grok under one company.
Musk, the world's richest man, also owns Tesla, Neuralink and the Boring Company. According to Reuters, the planned merger would boost SpaceX's push to place data centres in orbit. This will give an edge to Musk as the competition in the fast-growing AI race with Google, Meta and OpenAI heats up. Two Nevada entities have been created to support the deal. However, the news agency did not share details about the value or timing of the deal.
Corporate filings show both entities were set up on Jan. 21. One lists SpaceX and its Chief Financial Officer, Bret Johnsen, as managers. The other lists Johnsen as the sole officer. No final agreement has been signed, and the structure of the deal could change, the report added.
SpaceX is the world's most valuable private company, most recently valued at $800 billion in an insider share sale. According to a Wall Street Journal report xAI was valued at $230 billion in November 2025. Several media reports earlier said that SpaceX is considering a public listing this year at a valuation above $1 trillion.
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