Proposal to merge Tesla and SpaceX could create a $3 trillion-plus AI giant

What happened

Musk confirmed the review on October 20, 2026, during SpaceX’s quarterly earnings call. The proposal itself pitches the merged entity as worth over $3 trillion. SpaceX is a space company based in Hawthorne.

20, 2026 Elon Musk may be about to turn two of the world’s most valuable companies into one. A proposal to combine Tesla and SpaceX aims to create an AI-focused conglomerate worth more than $3 trillion. Tesla is an automotive and solar company based in Palo Alto.

Special committees of independent directors at both Tesla and SpaceX are now weighing a potential merger. He called the idea an appealing prospect.

He also acknowledged the obvious problem: he sits on both sides of the table. What’s actually on the table Terms have not been agreed, and the timeline remains uncertain.

Any deal would need approval from shareholders of both companies, not just a nod from their famously hands-on leader. Tesla is valued at approximately $1.5 trillion, while SpaceX sits at around $2 trillion following its IPO (the sale of a company’s shares to the public on a stock exchange).

SpaceX’s AI numbers make the pitch The timing of the announcement was not accidental.