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Well, things might be getting wild.
When SolarCity was facing financial challenges, Tesla swallowed it up. Elon Musk was the Chairman of the Board at SolarCity, and his cousins were the cofounders, CEO, and CTO. The synergies were supposed to help both, but Tesla’s solar business has declined a great deal since that acquisition.
When Tesla had a ton of unsold Cybertrucks, SpaceX bought thousands of them.
When Twitter (now X) needed a lot of support after Elon Musk bought it on a dare, Tesla engineers left their actual work and logged in at Twitter HQ for days or weeks.
xAI, Elon Musk’s AI startup created to compete with OpenAI, is burning cash (and methane) like there’s no tomorrow. It has just raised $20 billion, and that includes $2 billion from Tesla (even though shareholders voted against investing in xAI in 2025). Last year, SpaceX agreed to invest $2 billion into xAI.
Now there are reports that SpaceX, xAI, and Tesla might merge. Or two of them might merge. SpaceX and xAI might merge. Or xAI and Tesla might merge. Or Tesla and SpaceX might merge. Who knows? As seems to always be the case with Elon Musk now, it’s chaos, entertainment, and confusion.
“While the talks appear to be in the early stage, according to reports from Bloomberg and Reuters, it could eventually lead to at least one company folding into SpaceX,” TechCrunch reports. “Company representatives from SpaceX and xAI have not discussed this possibility in public. However, recent filings show that two new corporate entities were established in Nevada on January 21, which are called K2 Merger Sub Inc. and K2 Merger Sub 2 LLC. This suggests that Musk is keeping all options open.”
Recall that xAI already swallowed up X (Twitter), in a deal that valued X at $33 billion and xAI at $80 billion. SpaceX is reportedly valued at around $800 billion, more than any other private company in the United States, and there’s talk of a potential IPO for the company this year — though, Musk may be hesitant to go that route since he has historically hated having to engage in the norms and processes that come with a public company. Tesla has a market cap of $1.31 trillion at the moment, however, making it more valuable than the others combined. For now.
What’s driving all of this talk of merging the companies? Frankly, it could be financial challenges and missed targets at any of them. We’ll try to learn more in coming weeks and report on what’s happening.
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