SpaceX Weighs Mega Merger With Tesla or xAI

SpaceX is discussing a potential merger with Tesla Inc. and, separately, a possible combination with Elon Musk’s artificial intelligence company xAI, according to people familiar with the talks. No decisions have been made, and the companies could stay separate. Any deal could draw interest from infrastructure funds and Middle Eastern sovereign investors and may require major financing. Tesla shares rose as much as 5.6% after the discussions surfaced, valuing the company around $1.65 trillion. The talks connect to Musk’s plans for SpaceX-run orbital data centers to support AI, plus links to Tesla energy storage and Optimus robots. A merger could complicate SpaceX’s IPO, which it has weighed for June. Two “merger sub” entities were recently formed in Nevada.