Barclays analysts, led by Dan Levy, expect a potential merger between Elon Musk's Tesla and SpaceX to be announced before Tesla's 2026 annual shareholder meeting, which they expect to take place no later than December 6. The deal could bring financial synergies, but Barclays sees the biggest value in vertically integrating the two companies' AI technologies. An announcement pushed to late October or early November could complicate approval ahead of the meeting.
The merger has become a widely anticipated possibility after SpaceX's record IPO. The two companies already share overlapping investors and Musk's leadership. SpaceX has purchased more than $100 million worth of Tesla Cybertrucks, and xAI is a major customer for Tesla's industrial-scale batteries. They are also collaborating on Terafab, a chip-manufacturing project intended to supply Tesla's electric vehicles, robotaxis, and Optimus robots, as well as SpaceX's AI satellites.
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