SpaceX is reportedly considering a potential merger with electric car maker Tesla or a tie-up with artificial intelligence firm xAI, as Elon Musk considers options to strengthen his global empire.
According to Reuters, Rocket Company is investigating the feasibility of a tie-up with Tesla or XAI ahead of a huge potential stock market float.
This week it emerged the world’s richest man was considering a flotation, which would value SpaceX at $1.5 trillion (£1.1 trillion) and would reportedly be timed to coincide with a planetary alignment and his birthday in early summer.
Musk will turn 55 on June 28, around the same time when Jupiter and Venus will appear closer to each other.
The billionaire’s blue sky plans for SpaceX potentially include setting up datacenters in space to perform complex computing for AI models, which XAI could benefit from if plans to place computing centers in orbit become reality.
Tesla’s ability to build energy storage systems could also prove useful for SpaceX in harnessing solar energy in space to run datacenters.
Musk has also discussed using SpaceX’s Starship rocket to carry Tesla’s Optimus robots to the Moon and eventually Mars.
Two legal entities with the phrase “merger sub” in their names were established in Nevada on January 21, with SpaceX Chief Financial Officer Brett Johnson named as one of the executives.
On Wednesday, Musk announced that Tesla would stop production of its Model
Musk said the Model S and
The company’s recent quarterly earnings report revealed Decline in vehicle sales and decline in revenue As Musk pegs Tesla’s future on AI and robotics.
The earnings report described Tesla’s chaotic year as a “transition from a hardware-centric business to a physical AI company.”
Shares of the carmaker rose as much as 4.5% in after-hours trading on Thursday, while falling 3.5% during trading hours, valuing the company at about $1.56 trillion.
SpaceX’s potential flotation could seek to raise up to $50 billion, which would make it the largest initial public offering ever.
In December, SpaceX’s Johnson told employees that a potential IPO would help fuel “extraordinary flight rates” for development of the Starship rocket and a potential base on the Moon.
Donald Trump has said he wants to see a base on the Moon before he ends his second term in January 2029.
