Elon Musk Fuels Speculation Over Potential Merger Between Tesla and SpaceX

Tesla and SpaceX shares moved higher after CEO Elon Musk refused to rule out a potential combination of the two companies during recent appearances, emphasizing deepening operational collaboration. Together, the companies hold a combined valuation of approximately $3.5 trillion, with Tesla valued at $1.4 trillion and SpaceX at $2.1 trillion. The discussions follow joint projects such as the up to $119 billion Terafab chip manufacturing initiative and Starlink integration into Cybercabs. However, analysts note significant hurdles, citing Tesla's multiple of roughly 340 times trailing earnings, governance challenges, and expectations of no merger premium.