Shares of Tesla have jumped more than 5% after reports that SpaceX was in deal talks with Elon Musk's other companies stoked investor hopes that the billionaire's tech empire could be unified further.
SpaceX is in discussions to merge with Musk's AI startup, xAI, ahead of a blockbuster public offering planned for this year, Reuters reported on Thursday.
Separately, Bloomberg also reported that SpaceX is considering a merger with Tesla.
SpaceX is considering a flotation valuing the rocket company at $1.5 trillion that will reportedly be timed for early summer, as per reports.
If it proceeds, the flotation would raise more upfront than Saudi Aramco’s 2019 IPO, which brought in $29 billion, though Aramco’s valuation was higher at $1.7 trillion.
While Musk's companies are already interlinked, Tesla investors have long advocated for more consolidation, hoping that bringing different operations under one roof would allow Musk to keep a sharper focus on the EV maker's business as it aims to transform into an AI and robotics player.
Musk has laid out ambitious goals for Tesla, including making autonomous vehicles accessible to up to half the American population by the end of 2026 and starting production of the humanoid robot Optimus towards the end of this year.
But with Tesla rarely sticking to Musk's delivery timelines, and with the tech entrepreneur's involvement in political affairs, shareholders have been worried.
Earlier this week, Tesla said it would invest $2 billion in xAI, in a move that is expected to boost Tesla's autonomous driving and humanoid robot ambitions, at a time when its core EV sales business has sagged.
Consolidating business empire
Last year, the Tesla board announced a $1 trillion pay package for Musk, tied to lofty operational and valuation milestones, including hitting a market capitalisation of $8.5 trillion. The plan has also won shareholder approval.
Meanwhile, Musk has already been merging his businesses - last year, xAI bought X in a $45 billion deal, giving the AI firm access to the social media platform's data and distribution.
This month, xAI raised $20 billion in a funding round, exceeding its $15 billion target at a valuation of $230 billion.
The AI startup also received a $2 billion investment commitment from SpaceX as part of a $5 billion equity fundraising, the Wall Street Journal reported last year.
In September 2025, Tesla shares jumped more than 8% after a regulatory filing showed Musk had purchased nearly $1 billion worth of the electric-vehicle maker's stock.
The stock purchase reinforced Musk's push for greater control over Tesla, which is racing to meet its ambitious targets on robotaxis, artificial intelligence and robotics as it looks to pivot from an EV maker to a tech leader.
Musk holds a roughly 13% stake, according to LSEG data. Musk disclosed buying 2.57 million shares in open-market transactions, paying between $372.37 and $396.54 per share, according to the filing.
The purchase came as Tesla unveiled a proposed compensation package for Musk that could top $1 trillion if he delivers on his vision for stratospheric growth from new technologies.
