Tesla-SpaceX Merger Could Happen, Analyst Says, as Musk Calls Talks a “Minefield”

A Tesla-SpaceX merger is likely to happen eventually, according to David Nicholson, chief technology advisor at market research firm Futurum Group.

“In my opinion, 100%. It’s just a matter of when,” Nicholson said.

Elon Musk Says a Merger Is Not Certain

At Tesla’s earnings call on Wednesday, Elon Musk said he had nothing more to add about the merger’s prospects. He quipped: “It feels like we’re tap-dancing through a minefield.”

Musk also said it would be “an exaggeration” to describe a merger between Tesla and SpaceX as certain.

Tesla Reports $28.05 Billion in Third-Quarter Sales

Tesla reported third-quarter sales of $28.05 billion, down slightly from $28.1 billion during the same period a year earlier.

Could the Tesla Roadster Signal a Larger Musk Business Combination?

Nicholson said last week’s announcement of the Tesla Roadster, a futuristic electric car powered by SpaceX rocket thrusters, served as a “symbolic embodiment” of a potential merger between the two Musk companies.

Musk, who leads both SpaceX and Tesla, has said it could be beneficial for the companies to combine their work on chips, artificial intelligence (AI) and other technology projects.

A potential deal would bring together Tesla’s car, robotics and self-driving technology with SpaceX’s rocket, data center, satellite and communications businesses.

How a Merger Could Support Musk’s Mars Vision

The move could also support Musk’s mission to build a self-sustaining city on Mars. While the vision has its share of skeptics, it also has many supporters.

Over the past year, Musk has moved to consolidate his businesses, with SpaceX acquiring xAI and X, formerly known as Twitter, before going public this year.