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

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. Musk confirmed the review on October 20, 2026, during SpaceX’s quarterly earnings call. 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. The valuation math is enormous. Tesla is valued at approximately $1.5 trillion, while SpaceX sits at around $2 trillion following its IPO. Put them together and the combined figure could reach approximately $3.5 trillion to $3.6 trillion, based on those valuations. The proposal itself pitches the merged entity as worth over $3 trillion. SpaceX’s AI numbers make the pitch The timing of the announcement was not accidental. Musk floated the review on the same call where SpaceX po...