adminWASHINGTON: Elon Musk’s aerospace company, SpaceX, is reportedly considering a possible merger with electric vehicle company Tesla, according to a Bloomberg report citing sources close to the matter.
Apart from Tesla, SpaceX is also said to be evaluating other options including a merger with Musk’s artificial intelligence company, xAI.
Recent reports also suggest that SpaceX and xAI are in talks to merge ahead of a major public listing expected to take place this year.
The move is seen as an effort to consolidate some of Musk’s key assets including SpaceX rockets, Starlink satellite network, social media platform X, as well as AI chatbot Grok – under one entity.
Following the report, Tesla shares rose about 3 percent in after-hours trading.
According to sources, the idea of a merger between SpaceX and Tesla also received encouragement from some investors who saw potential synergies between the two technology giants.
Any deal that is signed is expected to attract significant interest from global infrastructure funds as well as sovereign investors from West Asia, based on the high interest in Musk’s strategic technology assets.
So far, SpaceX and Tesla have not provided any response regarding the report.
– Agency
