Published by Global Banking & Finance Review®
Posted on January 30, 2026
3 min readLast updated: January 30, 2026
Add as preferred source on GoogleTesla shares rose over 5% following reports of SpaceX merger talks, fueling hopes for Musk's business consolidation and boosting Tesla's AI ambitions.
Jan 30 (Reuters) - Shares of Tesla jumped nearly 5% on Friday after reports that SpaceX was in deal talks with Elon Musk's other companies stoked investor hopes that the billionaire's tech empire could be unified further.
SpaceX is in discussions to merge with Musk's AI startup, xAI, ahead of a blockbuster public offering planned for this year, Reuters reported on Thursday. Separately, Bloomberg News reported that SpaceX is considering a merger with Tesla.
While Musk's companies are already interlinked, Tesla investors have long advocated for more consolidation, hoping that bringing different operations under one roof would allow Musk to keep a sharper focus on the EV maker's business as it aims to transform into an AI and robotics player.
A merger between Tesla, xAI and SpaceX would benefit investors "dramatically," said Andrew Rocco, stock strategist at Zacks Investment Research.
"History says that ultimately, most Tesla/SpaceX investors are invested for the sole sake of betting on Elon Musk ... A single entity would help to further align his attention and ample resources to one company," Rocco added.
Musk has laid out ambitious goals for Tesla, including making autonomous vehicles accessible to up to half the American population by the end of 2026 and starting production of the humanoid robot Optimus toward the end of this year.
But with Tesla rarely sticking to Musk's delivery timelines, and with the tech entrepreneur's involvement in political affairs, shareholders have been worried.
Earlier this week, Tesla said it would invest $2 billion in xAI, in a move that is expected to boost Tesla's autonomous driving and humanoid robot ambitions, at a time when its core EV sales business has sagged.
Meanwhile, Musk has already been merging his businesses - last year, xAI bought X in a $45 billion deal, giving the AI firm access to the social media platform's data and distribution.
This month, xAI raised $20 billion in a funding round, exceeding its $15 billion target at a valuation of $230 billion. The AI startup also received a $2 billion investment commitment from SpaceX as part of a $5 billion equity fundraising, the Wall Street Journal reported last year.
(Reporting by Deborah Sophia in Bengaluru and Juby Babu in Mexico City; Editing by Anil D'Silva and Maju Samuel)
A merger is a business strategy where two companies combine to form a single entity, often to improve efficiency, expand market reach, or increase competitiveness.
An investment is an asset or item acquired with the goal of generating income or appreciation. It can include stocks, bonds, real estate, or business ventures.
Valuations are estimates of the worth of an asset or company, often determined through various financial metrics and analysis methods.
Funding refers to the financial resources provided to support a project, business, or initiative, often in the form of loans, investments, or grants.
Technology in finance, often referred to as fintech, involves the use of software and technology to provide financial services, improve efficiency, and enhance customer experiences.
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