Tesla-SpaceX Combination 'Makes Sense,' Musk Declares Amid Explosive AI Growth
Such a combination would unite Tesla with X's social media operations and SpaceXAI, the company behind the Grok AI system.
During remarks made this week, Elon Musk expressed support for combining Tesla with SpaceX, a transaction that would forge an approximately $3.5 trillion behemoth spanning artificial intelligence, aerospace operations, and electric vehicle production.
"Do I think it would be a good idea? Yes," Musk stated regarding the prospective combination during Tuesday's SpaceX third-quarter earnings presentation.
According to Musk, independent director committees at both SpaceX and Tesla have been established to evaluate the concept following shareholder requests, although he remains excluded from these deliberations given his conflicting interests in both entities.
Such a combination would unite Tesla with SpaceXAI, the developer behind the Grok artificial intelligence system (previously known as xAI), along with X, the social media company that SpaceX purchased in February. These deliberations occur as artificial intelligence operations at SpaceX emerged as the company's dominant revenue source during the third quarter, highlighting the increasingly critical role that AI plays throughout Musk's expanding technological enterprises.
"There's a lot to be gained from cooperating on developing superintelligence software, chip design, the Terafab, obviously, robotics, mass to orbit with the Starmind constellation. Connectivity," said Musk.
Nevertheless, Musk cautioned against assuming the merger would definitely proceed.
"Some people out there assume that a SpaceX and Tesla merger is a certainty, and I think that would be overstating it," he said, adding that the special committees have not reached agreement on terms of any transaction and there is no guarantee that they will.
"At the end of the day, the shareholders have to be supportive of this and particularly on Tesla's side we'll need a 50% vote of all shares, not just those who vote, but of all shareholders. And that's quite a high hurdle to try to achieve."
SpaceX Q3 earnings show huge AI revenue gains
These statements from Musk came on the heels of SpaceX's quarterly financial disclosure, which demonstrated revenues climbing 161% on a year-over-year basis to reach $14.6 billion, propelled predominantly by its "Super Intelligence" artificial intelligence division.
Revenue from SpaceX's Super Intelligence division reached $7.6 billion during the third quarter, representing an 830% surge compared to the previous year's period, establishing it as the company's primary revenue generator.
According to SpaceX, this expansion resulted from launching new cloud infrastructure service contracts, the Cursor acquisition, and growing utilization of its agentic artificial intelligence product Grok among both business and individual customers.
Combined Bitcoin holdings would exceed 30,000 BTC
A combination between Tesla and SpaceX would also consolidate two substantial corporate Bitcoin reserves within a single organization. According to their respective quarterly disclosures, SpaceX possessed 18,712 Bitcoin as of June 30, whereas Tesla maintained 11,509 BTC on that identical date.
Using these reported figures, the merged entity would possess 30,221 BTC, positioning it as the sixth-largest publicly traded Bitcoin treasury holder, surpassing cryptocurrency trading platform Bullish.