Elon Musk Leaves the Door Open to a Tesla-SpaceX Merger

Elon Musk could have shut down the Tesla-SpaceX merger talk with one sentence.

He did not.

During Tesla’s second-quarter earnings call, Musk pointed to growing overlap between the two companies and said any combination would need to follow a formal process.

No deal was announced. There is no public board proposal, signed agreement or shareholder vote.

His answer kept the possibility alive, and Tesla’s new filing shows the relationship is already much bigger than a shared CEO.

Here is the key exchange from the call:

$TSLA CEO Elon Musk says there is more and more overlap with $SPCX, especially with Terafab, calling it a really gigantic project, but says combining companies cannot be discussed on an earnings call and has to go through the appropriate process.

General Counsel Brandon Ehrhart… pic.twitter.com/BMnAcxRBz1

— AlphaSense (@AlphaSenseInc) July 23, 2026

Reuters reported that Musk was asked directly about combining Tesla with SpaceX on Wednesday’s call. He answered by pointing to collaborations across several fronts and increasing overlap, then said a corporate combination would have to go through the appropriate process rather than be decided on an earnings call.

Musk handed the question to Tesla General Counsel Brandon Ehrhart. Ehrhart described SpaceX as a strong partner and said the relationship has produced numerous beneficial transactions, while offering no announcement or timetable for a larger deal.

The companies already share real operating ground. Tesla supplies batteries and manufacturing technology for SpaceX projects, and Reuters said they are jointly developing Terafab, a semiconductor facility designed to produce AI chips.

Analysts quoted by Reuters see possible synergies across artificial intelligence, robotics, manufacturing, energy and space infrastructure. A transaction on this scale would also bring difficult governance, shareholder and regulatory questions.

For now, investors are debating the idea; neither company has adopted a public merger plan.

The financial connection is easier to measure.

Tesla’s Form 10-Q says SpaceX purchased $318 million of Megapack products from Tesla during the three months ended June 30. Tesla recorded $242 million of cost of revenue tied to those sales.

Across the first six months of 2026, SpaceX-related Megapack revenue reached $405 million, with $307 million in cost of revenue. SpaceX is now a meaningful customer for Tesla’s energy-storage business.

Tesla also invested $2 billion in SpaceX common stock in March. The stake represents less than one percent of SpaceX, yet Tesla valued it at $3.007 billion on June 30 and recorded a $1 billion net gain for the quarter.

That gain reflects a change in the investment’s value. It is separate from the revenue Tesla earns selling Megapacks to SpaceX.

The number still landed with a thud:

TESLA BOOKED A $1 BILLION NET GAIN ON ITS SPACEX $SPCX STAKE IN Q2 2026. pic.twitter.com/DOsZuEbxWP

— Wall St Engine (@wallstengine) July 23, 2026

Tesla says accounting rules presume it has significant influence over SpaceX because Musk leads both companies. Tesla also states plainly that it does not control SpaceX.

That distinction matters. Tesla has a large investment, substantial sales and growing technical cooperation with SpaceX.

It still owns less than one percent of the company and cannot make SpaceX’s corporate decisions.

A full combination would be a massive step from today’s partnership. Boards would have to evaluate the terms, shareholders would need a clear case, and regulators would get a close look at a company spanning cars, batteries, AI chips, robotics, satellites and rockets.

There is plenty to settle before any of that becomes real. The immediate story is already sitting in Tesla’s numbers: the two companies are doing meaningful business together, investing together and building technology together.

Musk left the door open. Tesla’s own filing explains why people are now staring through it.