Musk keeps Tesla-SpaceX merger door open, cites growing overlap

Asked on the July 22 earnings call whether Tesla and SpaceX might merge, Musk didn't dismiss it. "As you can tell from the many collaborations on so many fronts with SpaceX, there's more and more overlap," he said, while cautioning that "it's got to be done with the appropriate process" and can't be discussed on an earnings call.

The overlap is already concrete: Tesla supplies batteries and manufacturing technology for some SpaceX projects, and the two companies are jointly building TeraFab, a semiconductor plant meant to produce AI chips.

Merger speculation isn't new — investors and analysts have floated it for years — but discussion intensified as SpaceX pursues a record $75 billion IPO. Proponents argue combining the firms could simplify and unify Musk's sprawling empire across AI, robotics, manufacturing, energy, and space infrastructure.

The remark drew a quick investor reaction. Ross Gerber, CEO of Gerber Kawasaki, told CNBC that Tesla shareholders are "holding the short end of the stick" if a merger doesn't happen — arguing that investors who want SpaceX exposure could sell Tesla shares to get it once the opportunity arises, creating selling pressure on the stock. That's Gerber's own long-standing view, though — a vocal merger proponent — not a confirmed fact.

Still, with Musk himself pointing to a formal process that hasn't started, there's no timeline or terms on the table yet — investors should treat this as speculation revived, not news confirmed.