Speculation about a Tesla and SpaceX merger has intensified recently. Elon Musk did not rule out combining his companies during an earnings call. Investors see a stronger case for integrating these technology powerhouses. Existing collaborations already span batteries and AI chip development. However, significant regulatory and governance hurdles remain for any potential deal.

Tesla investors are responding to rampant speculation about a mega-merger with SpaceX, which raised $86 billion in a blockbuster IPO last month.

Musk told investors there is “more and more overlap” between his two companies.