SpaceX President Gwynne Shotwell Hints at Possible Tesla Merger

All eyes are on the SpaceX IPO — the world’s largest in history — and its CEO Elon Musk. But another publicly traded company in the Musk universe, Tesla, is often considered a potential merger partner for SpaceX. Tesla, with a current market cap of about $1.26 trillion, is led by Musk, who has pitched it as an AI and robotics company, despite most of its revenue coming from EV sales.

A merger with SpaceX could be a step toward achieving that vision. SpaceX president and COO Gwynne Shotwell seems open to the idea. In an interview with CNBC, Shotwell said a merger “might make Elon’s life a little easier.” SpaceX appears to be preparing for a potential merger.

The company amended its S-1 registration document ahead of its public debut to include new language in its risk factors section about mergers and acquisitions. The added sentence, which reads “We may issue a significant amount of equity in connection with future transactions,” warns investors of potential future dilution. This type of warning is typically unnecessary for small-scale deals, suggesting a large-scale merger, possibly with Tesla.

Musk has previously combined disparate pieces of his portfolio. SpaceX acquired Musk’s AI company, xAI, earlier this year. And xAI acquired Musk’s social media company, X, in an all-stock transaction the year before.

Why this matters: A potential merger between SpaceX and Tesla could have significant implications for the tech and automotive industries. For developers and businesses, a combined entity could lead to innovative applications of AI and robotics. For consumers, it may mean more integrated and efficient services.

However, questions remain about how such a merger would affect competition and the structure of the companies involved. As the SpaceX IPO looms, investors and industry observers will be watching closely for any signs of a potential deal. The integration of Musk's various ventures could also raise concerns about his influence and control over multiple critical sectors.