Catenaa, Wednesday, October 21, 2026- SpaceX and Tesla shares surged Wednesday after Elon Musk outlined merger plans that could have a combined value of $5 trillion.
“Both SpaceX and Tesla have formed special committees to discuss this idea at the request of shareholders, and these special committees consist of independent directors,” Musk said during SpaceX’s earnings call on Tuesday, adding that he sees “a lot of merit to combining the companies.”
SpaceX shares rose more than 8%, while Tesla shares rose more than 3.5%.
CBS News reported, citing Dan Ives, Partner and Senior Managing Director at investment firm Yorkville Ives, that the merger deal could be worth nearly $5 trillion, making it the largest corporate deal in history.
SpaceX was valued at $2.09 trillion on Wednesday, while Tesla’s market capitalization stands at about $1.52 trillion.
According to CBS News, Ives said Tesla shareholders would likely demand a premium to approve the merger.
“For the merger to get passed by shareholders, it would have to be a higher price for Tesla — likely in the 500/550 per share range in our view,” he told CBS News.
At Ives’ valuation, a combined SpaceX-Tesla business could rank among the world’s most valuable publicly traded companies, alongside technology giants Nvidia and Apple.
Musk sees potential benefits in combining the companies’ expertise in artificial intelligence, semiconductor development, robotics, and satellite infrastructure. A merger could bring those capabilities under a single corporate structure, though the companies have not agreed.
“There’s a lot to be gained from cooperating on developing super intelligence software, chip design, the Terafab obviously, robotics, mass to orbit with the Starmind constellation,” Musk said in Tuesday’s earnings call.
Despite the EV business being Tesla’s primary revenue driver, Musk has signaled that the future is autonomous vehicles and robotics for the company.
In January, the Tesla CEO said the company would phase out production of its Model S and Model X vehicles.
Instead, the company is shifting to developing autonomous products, such as self-driving taxis and humanoid robots.
CBS News reported, citing Musk, that Tesla will eventually produce 1 million humanoid robots a year as the company transitions to an “autonomous future.” Musk said in January that the humanoid robot, called Optimus, could hit the market in 2027.
