Musk weighs Tesla–SpaceX merger as IPO nears

Media reports on May 27, 2026 state that Elon Musk has been privately discussing a possible merger of Tesla Inc. and SpaceX in the run-up to SpaceX’s initial public offering. The discussions are described as exploratory, emerging in the weeks before SpaceX is expected to begin trading on the Nasdaq.

According to these reports, the idea of folding the electric-vehicle maker and the space launch company into a single entity is being considered as investors prepare for the SpaceX listing. The timing has drawn attention because it would link merger deliberations with the launch of SpaceX as a publicly traded stock.

SpaceX is expected to start trading on the Nasdaq on June 12, 2026, according to the coverage. The upcoming IPO is viewed in the reports as a key backdrop for any strategic move involving Tesla and SpaceX, since public-market valuation would help set reference prices for a combined group.

Commentary cited in the articles places Tesla’s current market capitalization at about $1.6 trillion. Based on these figures, some market observers quoted in the coverage suggest that a merged Tesla–SpaceX entity could be valued at more than $3 trillion, underscoring the potential scale of the transaction being discussed.

Reports highlight Musk’s different levels of control across the two companies as a central factor in the merger debate. Musk is described as holding roughly 20% of Tesla’s equity, reflecting a minority but still significant ownership stake in the automaker.

By contrast, the articles state that Musk controls about 85.1% of SpaceX’s voting power. This asymmetry between his equity position at Tesla and his voting control at SpaceX is presented as important for how any merger might be structured and how it could be perceived by shareholders and governance watchers.

Analysts and commentators cited in the reports note that these ownership patterns could influence decisions on exchange ratios, governance of a merged company, and the balance of influence among existing Tesla and future SpaceX public investors.

Several analysts quoted in the media coverage assign meaningful odds to a Tesla–SpaceX combination. Wedbush analyst Dan Ives is cited as putting the probability of a merger at roughly 80%–90% by early 2027, indicating that some on Wall Street see a high likelihood of a deal within the next few years.

The reports also indicate that broader market commentary frames a potential merger as a question of timing rather than possibility, although views among investors are described as mixed. Attention is focused on how valuation, ownership, and governance mechanics would be handled if talks advance beyond the exploratory stage.

Overall, the latest reporting portrays the Tesla–SpaceX merger concept as an active topic of discussion tied closely to SpaceX’s imminent Nasdaq listing, with Musk’s control profile and the scale of potential market value emerging as key issues for stakeholders.