SpaceX (SPCX) and Tesla (TSLA) are both exploring a possible merger, with each company's separate committee assessing the deal. The two companies already collaborate on projects, including the Terrafab semiconductor venture formed by SpaceX, Tesla and Intel, which may also draw in Taiwan Semiconductor Manufacturing. The article argues chip manufacturing is central to any lasting merger, but Terrafab remains an idea, with production not planned until 2028 at the earliest and facing heavy upfront capital and technical hurdles. It suggests SpaceX may be interested in Tesla's cash, which stood at $45 billion at the end of last quarter, even as Tesla's operating income fell 56% and its revenue is not growing. The author notes both stocks trade at premium valuations, with Tesla's P/E in the hundreds and SpaceX's $2 trillion market cap compared with trailing revenue of $33 billion.
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SpaceXTeslamergers and acquisitionsvaluationsemiconductors
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Related tickers and likely impact
TSLA
• NeutralTesla, Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.5T |
| Close on 10/30/2026 | 399.82 |
| Change that session | -0.86% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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