Musk exploring mega-merger of SpaceX, Tesla and xAI
30 Jan 2026

Elon Musk's three major companies, SpaceX, Tesla, and xAI, are in early-stage talks for a possible merger, according to reports from Bloomberg and Reuters.

The merger could see at least one of the companies integrating with SpaceX.

Two possible scenarios are being considered: a merger between SpaceX and Tesla or one between SpaceX and xAI (which already owns Musk's social media platform X).

Merger could precede SpaceX's IPO
Strategic move

According to Reuters, a merger between SpaceX and xAI could happen before a planned SpaceX IPO this year.

This would combine products like the Grok chatbot, X platform, Starlink satellites, and SpaceX rockets under one umbrella.

However, representatives from both companies have not publicly commented on the potential merger yet.

New corporate entities hint at merger possibilities
Corporate developments

Recent filings show that two new corporate entities were created in Nevada on January 21, named K2 Merger Sub Inc. and K2 Merger Sub 2 LLC.

This indicates Musk is keeping all options open for the possible merger talks.

The establishment of these companies could be a strategic move by Musk to facilitate the potential mergers or acquisitions of his companies.

Merger could enable space-based data centers
Strategic advantage

A merger between SpaceX and xAI could give the latter an opportunity to place its data centers in space, something Musk has expressed interest in.

On the other hand, a SpaceX-Tesla tie-up could align the EV maker's energy storage business with this space-based data center concept as well.

Either way, these potential mergers fit Musk's recent moves to consolidate resources between his companies.

Musk's companies have a history of strategic mergers
Past acquisitions

Last year, xAI acquired X in a deal that Musk said valued xAI at $80 billion and X at $33 billion.

SpaceX, which started operations in 2002, reportedly launched a secondary sale valuing it at $800 billion, making it the most valuable private company in the US.

A recent Financial Times report indicated that Musk wants to take SpaceX public in June. However, given his track record with such plans, timelines may vary.