SpaceX shares fell 2.59% amid speculation that Elon Musk could merge the company with Tesla before December 6. However, analysts said the decline reflected broader weakness in artificial intelligence stocks rather than merger rumours alone. Barclays analysts, led by Dan Levy, believe the deal could happen before Tesla’s next annual general meeting.
The proposed merger would combine Tesla’s physical AI technology with SpaceX’s artificial intelligence projects. Tesla’s Robotaxi and Optimus initiatives could work alongside SpaceX’s Grok and Macrohard platforms. According to Barclays, the deal would focus mainly on combining AI capabilities, although both companies could also benefit from financial synergies.
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Control of the combined company would remain a key consideration. Barclays estimates that Musk could own around 37% of the merged entity while controlling 56% of its voting rights. Under the proposed arrangement, each Tesla share could receive approximately 0.7 SpaceX shares, with the premium reflected in the exchange ratio.
Musk has also fuelled speculation about closer ties between the two companies. During Tesla’s second-quarter earnings call, he pointed to growing overlap between their operations, particularly through the Terafab project. Speaking at the All-In Summit last month, Musk also highlighted the extensive collaboration between the companies across several areas.
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Meanwhile, Tesla shares fell more than 1% in pre-market trading on Thursday. SpaceX carries a reported valuation of $2.06 trillion, compared with Tesla’s market capitalisation of $1.45 trillion. Tesla is scheduled to report its third-quarter earnings on October 21, as investors watch for further signals about the companies’ future plans.