Will Elon Musk eventually merge SpaceX with Tesla? Speculation is building
Speculation about a potential merger between SpaceX and Tesla is increasing, particularly as Tesla faces competition in the electric vehicle market. The companies are already collaborating on a semiconductor fabrication plant called Terafab, which could cost up to $119 billion. Elon Musk has indicated that any merger would require careful consideration to balance the interests of shareholders from both companies.
- ▪Tesla has fallen behind competitors in China for electric vehicle sales, according to recent figures.
- ▪The companies are developing a semiconductor fabrication plant called Terafab in East Texas.
- ▪Musk mentioned the complexities of merging the two companies during a recent earnings call.
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| Publication time | Thu, 21 May 2026 19:20:01 GMT |
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The timing of the merger may be ideal for Tesla. In China, the company fell fell behind competitors BYD and automotive conglomerates Geely and Chery for the highest number of electric vehicles in the country in April, according to monthly wholesale figures from the China Passenger Car Association. BYD even defeated Tesla as the leading top electric vehicle last year. Merger rumors are not new. Tesla and SpaceX, which also owns artificial intelligence company xAI, are already developing the semiconductor fabrication plant Terafab in East Texas.
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