Elon Musk backs a possible SpaceX-Tesla merger as his rocket and AI business reports first quarterly profit since going public

Elon Musk said he would support a merger between Tesla and SpaceX, according to a report published Tuesday that framed the comments alongside SpaceX’s latest quarterly results. Musk’s stance highlights how the billionaire’s two largest public-facing ventures, electric vehicles and space and AI computing, increasingly share technology and financing narratives even as each company still pursues its own operating priorities.

The report also said SpaceX posted its first quarterly profit since going public, attributing the swing to deals that rent out computing power to artificial intelligence firms. In plain terms, the company is monetizing access to high-performance computing resources rather than relying solely on launch contracts, a business model that tends to scale with demand from AI developers.

Those computing agreements, the report indicated, were a key driver of the quarter’s profitability. It also suggests SpaceX’s go-to-market emphasis is expanding beyond rockets to include infrastructure that supports machine-learning workloads, a shift that could change how investors evaluate timing, margins, and cash flow sustainability.

Musk’s merger comments came as Tesla continues to operate in an intensifying competitive environment for electric vehicles and energy products. While the report did not outline detailed terms, a merger would likely raise complex questions about governance, capital structure, and how to consolidate two businesses with different customer bases and regulatory exposures.

For Tesla, a tie-in with SpaceX would also mean increased relevance of manufacturing and delivery for energy and vehicle products to a broader ecosystem that spans launch, satellites, and computing. For SpaceX, aligning with a major consumer-tech and industrial brand could potentially accelerate commercial partnerships, though the report did not specify whether talks are at an early stage or have progressed beyond Musk’s public support.

The report did not provide numbers such as revenue, profit margin, or the size and duration of the computing-power deals that underpinned the quarter. It also did not disclose whether any corporate process has begun, such as formal negotiations, board approvals, or filing requirements that would typically accompany a merger discussion between listed companies.

Still, the combination of a profit-making quarter for SpaceX and Musk’s stated willingness to back consolidation indicates a broader market question: whether investors should increasingly value SpaceX as an AI infrastructure provider in the same valuation framework as its space and defense work, and whether Tesla is positioning itself to participate in that monetization path.