The Tesla CEO clarified that he “had very little correspondence with Epstein. (Photo: AP/ File)
Elon Musk’s SpaceX is considering a potential merger with Tesla, as well as an alternative combination with artificial-intelligence firm xAI, Bloomberg News reported on Thursday, citing people familiar with the matter. Tesla’s shares were up 3% after the bell following the report.
SpaceX has discussed the feasibility of a tie-up with Tesla, an idea some investors have been pushing.
However the company has also explored a possible combination with xAI ahead of a potential stock market listing.
The discussions are at an early stage and no decision has been taken, the people said. They asked not to be named because the talks are private.
Bloomberg earlier reported that Musk has been sounding out advisers and investors on different merger options involving SpaceX, Tesla and xAI, as he weighs how best to align his companies’ long-term goals. Neither SpaceX, Tesla nor xAI has publicly commented on the reports.
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Musk, who runs all three companies, has previously said they work closely together in areas such as technology, data and talent. Any merger would face scrutiny from investors and regulators, given Musk’s overlapping roles and influence across the firms.
Tesla shares have been volatile in recent months, while SpaceX remains privately held and is one of the world’s most valuable startups. xAI, launched in 2023, is Musk’s push into artificial intelligence and is behind the chatbot Grok.
Sources cautioned that the talks could still fall apart and may not lead to any deal.
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The Tesla CEO clarified that he “had very little correspondence with Epstein. (Photo: AP/ File) 
