Tesla and SpaceX explore merger that could combine 30,221 Bitcoin

Elon Musk confirmed that Tesla and SpaceX are considering a merger that could bring both companies' Bitcoin holdings into a single company. Musk said during SpaceX's October 20 earnings call that both companies had appointed independent director committees to assess a possible combination. Musk supported the idea but said Musk would avoid negotiations because Musk holds ownership interests in both companies. Musk cautioned that the committees had not settled transaction terms and might never agree.

The proposed combination would bring SpaceX's aerospace, satellite communications and AI operations together with Tesla's electric vehicles, autonomous driving technology and humanoid robotics business. Musk identified opportunities to integrate AI infrastructure, chip development and manufacturing, including the Terafab semiconductor project developed jointly by the companies. SpaceX's third-quarter results showed revenue rising 161% to $15 billion. SpaceX's Super Intelligence segment generated $8 billion of that revenue.

The companies' June 30 regulatory filings show SpaceX holding 18,712 BTC and Tesla holding 11,509 BTC. The combined 30,221 BTC would have a value of about $2,508 million with Bitcoin trading around $83,000. BitcoinTreasuries' October 21 rankings and the disclosed holdings indicate the combined company would rank sixth among publicly traded corporate Bitcoin holders. Strategy, Metaplanet, Twenty One Capital, MARA Holdings and Strive would rank ahead of the combined company.

However, Tesla and SpaceX have followed different cryptocurrency investment approaches. Tesla purchased $1.5 billion of Bitcoin in 2021. Tesla sold about 75% of Tesla's Bitcoin holdings the next year to bolster liquidity. SpaceX has retained a substantial Bitcoin position acquired for about $661 million. SpaceX's latest financial statements put digital assets at $1,573 million on September 30, compared with $1,637 million at the end of 2025.

SpaceX is accelerating AI infrastructure investment, creating competing uses for corporate capital as the companies consider consolidation. SpaceX spent $20 billion on capital expenditure in the third quarter. SpaceX directed $16 billion of that expenditure toward AI infrastructure. Management expects fourth-quarter spending to reach $35 billion to $40 billion. Those commitments greatly exceed the combined Bitcoin portfolio and could affect cryptocurrency reserve management at a merged company, particularly given Tesla's previous liquidity-driven Bitcoin sales.

Wall Street analysts are increasingly evaluating the financial effects of a combination, and JPMorgan outlined a possible acquisition of Tesla by SpaceX. Investing.com reported that JPMorgan analyst Rajat Gupta discussed an all-stock transaction in an October 21 research note. Gupta said such a transaction could provide Tesla shareholders with a 30% to 35% premium. JPMorgan identified shared engineering talent, AI infrastructure and chip development as strong reasons for combining the companies. JPMorgan also described SpaceX's approximately $2 trillion valuation as valuable currency for an acquisition.

However, JPMorgan identified regulatory approval in China as potentially the biggest barrier to a merger. China generates roughly 20% of Tesla's revenue. SpaceX has extensive US defense relationships and operates Starlink, which is not authorized in China. Gupta suggested placing Tesla's China operations under majority local ownership while preserving technology and brand licensing arrangements. Such a restructuring could ease Beijing's concerns but would complicate negotiations. A transaction would also need approval from holders of a majority of Tesla's outstanding shares.