Elon Musk confirmed the merger of his aerospace firm, SpaceX, with his artificial intelligence company, xAI. The resulting privately held entity is valued around $1.25 trillion. The deal consolidates rockets, satellite internet, and advanced AI to create a vertically integrated powerhouse.
The move prompted immediate discussion regarding the future of Musk's electric vehicle company, Tesla. Wedbush Securities analyst Dan Ives stated a "growing chance" exists that Tesla could merge into the SpaceX/xAI ecosystem. Ives projected this integration could occur over the next 12 to 18 months.
Tesla stock reaction was subdued in early trading on February 3, 2026. The immediate focus remains on integrating Tesla’s robotics and autonomous driving development with the combined resources of SpaceX and xAI.