Thursday, January 29, 2026

"Elon Musk’s SpaceX Said to Consider Merger With Tesla or xAI" (TSLA; ELON)

Some impresarios, since at least the time of Florenz Ziegfeld and his Follies, but maybe all the way back to the comedies of Aristophanes*, and even earlier, get their name attached to almost everything they produce. A recent example is billionaire movie maker and marketing genius Tyler Perry consciously flaunting/mocking the convention:

Tyler Perry's House of Payne - 2022
Tyler Perry's Ruthless - 2022
Tyler Perry's For Better or Worse - 2017
Tyler Perry's Meet the Browns - 2011
Tyler Perry's Madea Gets a Job -
Tyler Perry's Madea's Neighbors From Hell -
Tyler Perry's A Madea Homecoming -
 
And then there is Elon. 
From Bloomberg, January 29:

SpaceX is considering a potential merger with Tesla Inc., as well as an alternative combination with artificial intelligence firm xAI, according to people familiar with the matter, a sign billionaire Elon Musk is weighing how to consolidate his empire.

The firm has discussed the feasibility of a tie-up between SpaceX and Tesla, an idea that some investors are pushing, the people said, asking not to be identified as the information isn’t public. Separately, they are also exploring a tie-up between SpaceX and xAI ahead of an IPO, some of the people said.

Any transaction could attract sizeable interest from infrastructure funds and Middle Eastern sovereign investors, some of the people said. A deal could also potentially require a large financing component, one of them said.

No final decisions have been made, details could change and the companies could decide to remain separate, the people said. Musk and representatives for SpaceX, xAI and Tesla didn’t immediately respond to requests for comment.

Different parts of Musk’s grand vision for SpaceX — of the company putting data centers into space to do complex computing for AI — would potentially be served by the various scenarios. xAI could benefit enormously from computing capacity provided by SpaceX’s data centers in orbit, if the company can make the engineering work.

Tesla’s ability to manufacture energy storage systems could help SpaceX use solar energy in space to run the data centers. Musk has also discussed using SpaceX’s Starship rockets to carry Tesla’s Optimus robots to the moon as well as to Mars.

Read More: Tesla Plots $20 Billion Splurge to Support Musk’s AI Future

Tesla shares jumped as much as 4.5% in after-hours trading on Thursday. The stock had fallen 3.5% during normal hours, giving the company a market value of about $1.56 trillion. SpaceX is targeting an IPO that would value the company at about $1.5 trillion, Bloomberg News has reported.

Two legal entities with the phrase “merger sub” in their names were set up in Nevada on Jan. 21 that count SpaceX Chief Financial Officer Bret Johnsen as officers, Nevada’s business portal shows.

Reuters reported the potential merger between SpaceX and xAI earlier. Shares of xAI would be exchanged for shares in SpaceX, Reuters said, citing a person familiar with the matter....

....MUCH MORE, including sidebars. 
*
A quick Google search returns hundreds of uses of "Elon Musk's xAI" as does "Aristophanes's The Birds".
It is the latter which gives us Cloud Cuckoo Land, though some say Mr. Musk has the rights to the term.