Musk weighs Tesla-SpaceX merger that could create $3.5 trillion giant

Elon Musk is considering merging Tesla and SpaceX, a move that could create a combined entity valued at nearly $3.5 trillion and reshape his technology empire. Musk publicly endorsed the idea, and special committees have been formed to examine a potential deal, though no agreement is certain. A merger would unite Tesla's electric vehicles and energy storage with SpaceX's rocket launches and Starlink satellite internet, offering investors exposure to a broader range of businesses. However, it would also require shareholder approval and face significant regulatory and corporate governance challenges, including differing exposures to US national-security interests and Tesla's operations in China. Potential collaboration areas include semiconductor production, AI computing, energy storage, and manufacturing, with Musk planning a Terafab project for advanced chips. The deal would rank among the largest corporate mergers in history, but execution risks remain high across capital-intensive projects like Starship, robotaxis, and humanoid robots.