Musk Opens Door to Tesla-SpaceX Merger on July 22 Earnings Call

Elon Musk declined to rule out a merger between Tesla and SpaceX during Tesla's July 22 earnings call, pointing to growing operational overlap between the electric vehicle maker and his private rocket company. The acknowledgment marks the first time Musk has publicly entertained combining the two entities.

A deal would face structural hurdles. Musk owns different equity stakes in each company—he controls roughly 13% of Tesla and approximately 42% of SpaceX according to recent estimates—creating complex pricing and fairness dynamics for minority shareholders in any exchange ratio. National security regulators would likely scrutinize the combination given SpaceX's classified defense contracts alongside Tesla's manufacturing presence and revenue exposure in China.

The companies have expanded collaboration in recent years. SpaceX uses Tesla battery technology in its Starship program, and Tesla engineers have consulted on SpaceX materials science projects. Both organizations draw from overlapping talent pools in engineering and manufacturing.