Rising SpaceX Valuation Fuels Speculation About Potential Tesla Merger

During a CNBC interview earlier this month, host Morgan Brennan asked SpaceX President and Chief Operating Officer Gwynne Shotwell whether the aerospace company might eventually acquire Tesla, Elon Musk's second-largest holding.

Speculation over a potential merger between SpaceX and Tesla has intensified following SpaceX's rising valuation. (Photo: Official SpaceX Photos Flickr)

Shotwell did not dismiss the possibility and suggested that such a move could have strategic benefits, Shawn Tully reported for Fortune Tech on June 23, 2026.

"There's a convergence we're all trying to accomplish in the future," she said, adding that a tie-up "might make Elon's life a little easier."

Following SpaceX's highly successful market debut, analysts say the economics of a potential merger have improved. With a higher valuation, SpaceX could theoretically acquire Tesla while issuing fewer shares than would have been necessary previously.

Supporters of the idea argue that a merger could help address Tesla's ongoing challenges, including slowing earnings growth.

According to the report, Tesla generated $3.4 billion in GAAP net income over the past four quarters, down significantly from previous years, despite maintaining a market capitalization of roughly $1.5 trillion.

Several Wall Street figures have expressed support for a possible deal. Wedbush analyst Dan Ives reportedly placed the odds of a merger at 80 percent.

Longtime Tesla investor Ross Gerber suggested that combining Musk's businesses could advance his vision of creating a technology conglomerate centered on artificial intelligence.

Critics argue that such a merger would create one of the most unusual corporate structures in modern business.

Based on current valuations, a combined SpaceX-Tesla entity could be worth approximately $4 trillion, placing it among the most valuable companies in the United States while facing significant questions about profitability and governance.