SpaceX and Tesla have each established special committees to evaluate a potential merger, according to statements made during recent earnings calls. The move follows a series of overlapping initiatives in artificial intelligence, robotics and chip development that have drawn attention from investors and analysts.
Financial performance and AI revenue surge
In its third‑quarter earnings released on Tuesday, SpaceX reported $7.56 billion in revenue attributed to its artificial‑intelligence division, which the company labels “super‑intelligence.” Within that segment, the sub‑category called “SI solutions & infrastructure revenues” climbed to roughly $7 billion, more than three times the amount recorded in the prior quarter. Analyst Gil Luria of DA Davidson noted that a portion of the increase—$608 million—came from the integration of Cursor, while the bulk of the remaining revenue likely reflects compute‑rental contracts with firms such as Anthropic and Google, with a smaller contribution from the Grok service.
By contrast, Tesla’s third‑quarter results, released on Wednesday, showed a second consecutive quarter of declining profits. The company’s earnings were described as “sucked,” reflecting a shift in focus away from traditional vehicle sales toward robotics, autonomous‑taxi services and a high‑cost Roadster prototype that is not slated for production for several years.
Existing ties and joint AI projects
SpaceX and Tesla already have financial and operational links. SpaceX purchased $131 million worth of low‑selling Cybertruck units from Tesla and has previously held Tesla bonds. The two firms have also announced collaborative AI initiatives named Terafab and Macrohard (sometimes referenced as Microhard). Terafab is a chip‑fabrication venture intended to be built in Texas, with Intel participating in the development of the technology. During a SpaceX investor call, Elon Musk projected that a test chip from the facility could be available in May or June 2027, with volume production expected in the second half of 2028. Intel’s CEO confirmed continued commitment to the partnership, though no binding agreement has been disclosed.
Macrohard is described as an AI project that would allow users to simulate software originally created by Microsoft. The S‑1 filing from May notes that both Terafab and Macrohard are in very early stages, with many details—including financial terms and intellectual‑property rights—still unresolved. Neither project appears in the most recent 10‑Q filings.
Analyst perspectives on a combined entity
Market observers have highlighted potential financial incentives behind a merger. Matt Levine, a long‑time commentator on Musk’s enterprises, argued that combining the two companies would consolidate overlapping AI, robotics and chip resources, potentially creating a “general‑purpose AI” platform that could serve autonomous vehicles, space operations and other applications. Levine also pointed out that both firms depend heavily on Nvidia chips for AI workloads, suggesting that a unified entity could leverage purchasing power and streamline infrastructure investments.
Gil Luria added that if SpaceX continues to build out AI‑related capacity at the pace Musk has outlined, the company could generate surplus compute resources that might be sold to third parties. Such capacity, coupled with Tesla’s manufacturing footprint, could enhance the combined firm’s ability to meet the growing demand for AI infrastructure.
Despite the speculative nature of the merger discussion, both companies have indicated that they are actively reviewing the strategic fit. The formation of dedicated committees signals a formal step beyond informal talks, and the upcoming months may reveal whether the two Musk‑led enterprises will move toward a single corporate structure.
Norman Pearlstine is the Executive Editor and Co-Founder at News Raise. With over two decades of experience across financial journalism, corporate governance, and market analysis, Norman leads the editorial direction and ensures strict adherence to journalistic accuracy and ethics.
