Elon Musk weighs consolidating his companies

Billionaire Elon Musk is reportedly exploring a potential merger between his firms SpaceX and Tesla, per Bloomberg, or a tie-up between SpaceX and his artificial intelligence company, xAI, per Reuters.

Reports on the discussions sparked significant market interest. It sent Tesla shares up 5.6% on Friday, pushing its market value to approximately $1.65 trillion.

The move comes as SpaceX gears up for an IPO in June, seeking to raise as much as $50 billion at a valuation of $1.5 trillion. If the merger goes through, it would be the largest public offering in history.

The proposed integrations align with Musk’s vision of using SpaceX to put AI data centers in space. He could also leverage Tesla’s energy storage expertise to power these systems via solar energy.

Analysts note that any potential deal would likely draw massive investment from sovereign wealth funds and infrastructure investors.