Elon Musk won't say whether SpaceX and Tesla will merge as speculation grows

Elon Musk is keeping investors guessing about whether Tesla and SpaceX could eventually become one company.

During Tesla's earnings call Wednesday, Musk declined to confirm or deny speculation that his electric vehicle maker could merge with his space exploration company following SpaceX's record-setting initial public offering last month.

"There's going to be more and more overlap" between the companies, Musk said, adding that any discussion of combining businesses would have to follow the appropriate corporate process rather than take place during an earnings call.

The comments come as investors increasingly speculate that Musk could unite two of the world's most valuable companies into a business worth an estimated $3 trillion.

Musk pointed to growing cooperation between Tesla and SpaceX, including potential use of Starlink satellite internet in Tesla's robotaxis and expanded collaboration on artificial intelligence. The companies also formed a joint venture earlier this year called Terafab, an Austin-based facility focused on manufacturing advanced microchips.

Some Wall Street analysts believe the strategic fit is strong. They argue a merger could streamline AI development, strengthen engineering efforts and make it easier to raise capital for future projects.

Tesla's latest earnings report showed net income declined from a year ago, missing analyst expectations despite improved vehicle sales. Investors appeared more focused on Tesla's AI ambitions, self-driving robotaxis, humanoid robots and its relationship with SpaceX than on traditional electric vehicle sales.

Questions about a possible merger dominated submissions from individual investors ahead of the earnings call, though none were addressed directly by company executives.

A combined company would also increase Musk's control. He currently holds more than 80% of the voting shares at SpaceX but controls only about 20% of Tesla's voting power.

Musk has previously merged several of his businesses. SpaceX acquired his artificial intelligence company xAI earlier this year, while xAI had previously purchased the social media platform X. Tesla also acquired SolarCity in 2016.

Despite the enthusiasm from some investors, analysts caution that a Tesla-SpaceX merger would likely face significant regulatory scrutiny, particularly because of Tesla's manufacturing operations in China and SpaceX's extensive work with the U.S. government.

For now, Musk is offering no clear indication of whether a merger is in Tesla's future, leaving investors to continue speculating about what could become one of the largest corporate combinations in history.