According to The Verge on 23 October 2026, SpaceX and Tesla have formed special committees to discuss a potential merger. Elon Musk stated during a SpaceX earnings call that combining the two firms holds a lot of merit for developing superintelligence software.
Key takeaways
- SpaceX and Tesla have formed special committees to discuss a merger.
- SpaceX reported $7.56 billion in revenue from its super intelligence division in Q3.
- Tesla posted a second consecutive quarter of declining profits in its Q3 results.
- Musk claimed that the Terafab chip-making venture will reach volume production in the second half of 2028.
What is the SpaceX Tesla merger discussion about?
The conversation around a potential deal ties closely into Elon Musk's stated goals of going to Mars and spreading consciousness. Because controlling robots on Mars from Earth involves a lag, autonomous AI robots become necessary. Musk noted on an earnings call that there is a lot to be gained from cooperating on developing superintelligence software.
On the financial side, SpaceX recently reported $7.56 billion in revenue from its super intelligence division during Q3 on Tuesday. That figure includes $7 billion from SI solutions and infrastructure revenues, bolstered by Cursor and compute rentals to Anthropic and Google. Meanwhile, Tesla released Q3 results on Wednesday showing declining profits for the second straight quarter as the automaker focuses more on robots and self-driving taxis rather than standard cars.
What are the existing projects between spacex and tesla?
The two companies already share several tie-ups and joint ventures. SpaceX previously bought $131 million of Cybertrucks from Tesla and has held Tesla bonds. Also, they announced two AI projects named Terafab and Macrohard.
Terafab is a chip-making venture planned for Texas with Intel partnered to develop the technology, while Macrohard involves simulating software made by Microsoft. According to an S-1 filing from May, these initiatives remain in early stages without finalized financial terms or intellectual property rights. Musk stated that Terafab will reach volume production in the second half of 2028, with a first test chip expected in May or June 2027.
Why it matters for investors and the tech industry
Shareholders and analysts are evaluating the merger proposition against a backdrop of high credit risk for SpaceX, which is about to borrow another $40 billion for Nvidia chips. While fans may focus on the narrative of interplanetary travel, analysts like Gil Luria from DA Davidson note that much of SpaceX's recent revenue stems from renting out compute resources and business services rather than pure consumer adoption of Grok. With Intel not strictly obligated to remain part of Terafab and Musk's history of missing timelines, the structural and financial alignment of both companies remains uncertain.
Frequently asked questions
SpaceX and Tesla have formed special committees to discuss a potential merger, according to a report by The Verge.
SpaceX reported $7.56 billion in revenue from its super intelligence division during Q3, which included $7 billion in SI solutions and infrastructure revenues.
Tesla released Q3 results on Wednesday that showed a second consecutive quarter of declining profits as the company shifts focus toward robots and self-driving taxis.
Terafab and Macrohard are two joint projects announced by SpaceX and Tesla. Terafab is a chip-making venture in Texas partnered with Intel, and Macrohard is a project simulating Microsoft software.
Musk claimed that Terafab will reach volume production in the second half of 2028, with the first test facility chip expected in May or June 2027.
Based on reporting by The Verge. Read the original article
