Why Are Tesla and SpaceX Separate? Musk Says ‘Great Question’

Elon Musk again teased the idea of his AI and rocket firm SpaceX combining with electric-car maker Tesla Inc., noting the extensive cooperation between the two companies he leads as chief executive officer.

During a virtual appearance at All-In Summit 2026, an event put on by several technology investors in his inner circle, Musk was asked about an upcoming showcase of Tesla’s next-generation Roadster. The CEO said years ago that Tesla will offer a SpaceX option package, where small rocket thrusters will boost the car’s acceleration and top speed.

One of the All-In co-hosts, David Friedberg, then asked: “Elon, why do you still have two separate companies?”

“Great question,” Musk responded. “Who could imagine what action one might take when there’s so much close collaboration in so many areas?”

Speculation has mounted this year that Musk might merge SpaceX and Tesla. His business empire has gone through significant transformation, with SpaceX acquiring the artificial intelligence firm xAI in February, and the combined company going public in June in the largest IPO of all time.

Read More: Are SpaceX and Tesla Hurtling Toward a Merger?

Musk has fed the speculation by frequently talking about “convergence” among his companies. SpaceX and Tesla are working together on a massive joint project called Terafab, a planned fabrication plant that aims to manufacture semiconductors in the US, starting in Texas.

SpaceX President Gwynne Shotwell appeared in-person at All-In ahead of Musk, with another one of the event’s co-hosts joking with her about the possibility of the company combining with Tesla.

Shortly after discussing SpaceX’s acquisition of AI coding startup Cursor, another All-In co-host, Jason Calacanis, asked Shotwell: “What other companies are you planning on buying?”

“Good one,” Shotwell said.

“Do you like electric cars?” Friedberg asked.

“I have a bunch” she said.