Elon Musk Eyes Merging SpaceX with Tesla in $3.4 Trillion Empire

Elon Musk is openly discussing the possibility of merging SpaceX with Tesla (NASDAQ:TSLA) after SpaceX's initial public offering, potentially creating a $3.4 trillion empire, according to reports.

IPO and Merger Details

SpaceX filed its S-1 on May 20, 2026, targeting a $1.75 trillion valuation, which would be the largest IPO in human history. Tesla, the publicly traded half of the Musk universe, currently has a market cap of about $1.65 trillion. A combined entity could be worth $3.4 trillion.

Musk's Motivations

Musk has not fully detailed his reasons for the merger, but he hinted that combining SpaceX's space capabilities with Tesla's electric vehicle and energy technologies could create significant synergies. The timing of his comments, just before SpaceX's IPO, raises questions about its impact on the offering.

Context

SpaceX is a private company owned by Musk and other investors, while Tesla is a public company. Any merger would require approval from Tesla shareholders and regulators. The timing of Musk's statements could affect SpaceX's IPO valuation.

What This Means for Investors

Tesla investors could see a dramatic shift in the company's nature if the merger goes through, potentially increasing risk and complexity. On the other hand, some may see an opportunity to gain exposure to SpaceX's business through Tesla shares. The situation remains uncertain until official details are announced.