Elon Musk is weighing a corporate remake that would put Tesla and Space Exploration Technologies under one roof, and both companies have already formed committees to examine whether a merger would make sense. The idea is still only being reviewed, but the fact that the boards have moved from speculation to formal study gives the discussion real weight.
That is why investors are searching the subject now. Tesla and Space Exploration Technologies together carry a market value of nearly $3.5 trillion, so even a preliminary look at an all-stock combination would be one of the largest corporate rearrangements ever considered. The question is not just whether the deal could happen, but what kind of ownership split could possibly fit two businesses of this scale.
The appeal is easy to describe. A merger could pull electric vehicles, battery packs, rocket launches, satellite internet and artificial intelligence under one umbrella, giving Musk a single structure for two companies that already overlap in ambition, if not in product lines. SpaceX made its public debut earlier this year and now has a market cap of almost $1.9 trillion, with revenue of $14.6 billion last quarter, up 161% from a year earlier. Its connectivity revenue climbed to $5.25 billion, while AI revenue reached $7.56 billion and rose more than 10-fold from the same quarter a year ago. On a trailing basis, SpaceX trades at a price-to-sales ratio of 56.
Tesla looks very different. Its revenue topped $100 billion over the past 12 months, but Q3 revenue was little changed year over year and the EV business still makes up most of the company today. Tesla trades at a price-to-sales ratio of 13 and a price-to-earnings ratio of 417, even as earnings have been declining for years. EBIT peaked at nearly $15 billion in late 2022, then fell to $3.63 billion. That gap matters because it shows why this merger talk is so uneven: one company is expanding at breakneck speed, while the other is large, profitable on paper and slowing down.
That is also why a deal remains highly unlikely over this short time span. SpaceX’s explosive growth and $1.9 trillion valuation make a clean merger structure hard to picture, and any all-stock transaction would have to decide how to divide ownership between two giants with very different trajectories. For now, the committees are only testing the merits. If Musk does push further, the next thing that matters will be the split itself, because that is where the real deal math begins.
