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Musk revisits idea of merging Tesla and SpaceX, citing AI compute needs
The discussion points to Terafab, Tesla and SpaceX's semiconductor push, as a shared infrastructure focus even though no merger has been announced.
Elon Musk has reopened talk of a potential merger between Tesla and SpaceX, this time framing the debate around how their technology paths could be converging as both companies increase their use of AI infrastructure, according to Yahoo Finance. Musk discussed the topic on the Sept. 15 All-In Podcast with SpaceX President Gwynne Shotwell, and the conversation explicitly included Terafab and the possibility of combining the two companies.
Terafab, described as a semiconductor manufacturing project intended to reduce reliance on outside chip supply, is presented as the key new variable that could make Tesla and SpaceX's AI hardware needs a shared strategic problem. The piece argues that a combined structure could connect Tesla’s work on autonomous driving, robotics and manufacturing with SpaceX’s rockets, satellites, communications network and expanding AI infrastructure, with semiconductors as the physical center of overlap.
Even so, the report emphasizes that no merger has been announced, and it highlights the potential challenges of combining two large companies, including valuation, governance and capital allocation questions that could outweigh theoretical synergies. It also notes that SpaceX has a profitable Starlink business and a launch franchise, while a tie to Tesla’s more cyclical auto business could be a concern for shareholders.
On the investor side, Yahoo Finance cites Insider Monkey data showing 116 hedge funds holding Tesla in Q2 2026, down from 123 in Q1. It also says BAMCO held roughly 12.5 million shares after increasing its stake by about 5%, while SpaceX only began public trading in June, leaving no comparable Q1 hedge-fund count and making its Q2 filings the first post-IPO institutional baseline.