Tesla Shares Rally as Wall Street Buzzes Over Potential SpaceX-xAI Merger

Tesla’s stock jumped this past Friday, climbing by nearly 5%, despite the company not releasing a new vehicle, cutting prices, or issuing any high-profile social media statements. Instead, investor enthusiasm was driven by rumors of possible merger talks involving Elon Musk’s SpaceX, Tesla, and his AI startup xAI.

$TSLA is up about 5% on fresh chatter around a potential tie-up with SpaceX and xAI pulling more of Musk’s ecosystem under one umbrella.

Debate centers on whether combining assets concentrates AI, space, and EV leverage or dilutes Tesla’s core auto story for existing holders.… pic.twitter.com/xQKeOpxGqu

— Vest (@VestExchange) January 30, 2026

Merger Speculation Sends Shares Higher

Recent financial reports suggest that SpaceX and xAI are in early discussions about a potential merger ahead of a major public offering planned for later this year. On top of that, there are circulating reports indicating SpaceX might also explore a consolidation with Tesla, further capturing the attention of markets.

While none of the companies involved has confirmed these discussions, the very possibility of uniting Musk’s flagship technology ventures appears to have encouraged strong buying interest among investors.

Why Investors Are Excited

Some Tesla shareholders have openly called for greater consolidation across Musk’s businesses as a way to streamline strategic focus and unlock more cohesive growth opportunities. According to analysts, combining the companies could make it easier for Musk to align his electric vehicle, AI, and aerospace ambitions inside a single corporate structure, an idea that many supporters find compelling.

One market expert cited in the report noted that many Tesla and SpaceX investors bet on Elon Musk himself rather than specific products, which is why the conjecture around a comprehensive corporate grouping has resonated so strongly.

Big Plans, Big Challenges

Elon Musk’s roadmap for Tesla includes expanding autonomous vehicle access to much of the U.S. population and launching production of the humanoid “Optimus” robot later this year, ambitious goals that underscore the company’s transformation into a broader technology and robotics leader. However, Tesla has also faced skepticism over ambitious deadlines and product timelines, which could temper expectations around integration.

Meanwhile, xAI, backed by recent fundraising efforts and bolstered by Tesla’s own $2 billion investment, remains a central piece of Musk’s broader artificial intelligence efforts. Both SpaceX and Tesla’s involvement with xAI is seen as a way to accelerate developments in AI, robotics, and autonomous systems.

Bottom Line

At this stage, the merger discussions are informal and unverified by the companies involved, but markets have responded positively to the idea of tighter integration across Musk’s vast technology portfolio. Whether a deal ultimately materializes remains to be seen, but for now, the speculation itself has been enough to give Tesla’s stock a lift.