SpaceX’s prospectus mentions Tesla 87 times! Analysts again raise expectations for a 2027 merger.
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SpaceX's IPO prospectus not only reveals the rocket company’s financial details, but unexpectedly serves as a public statement of the deep binding relationship between Tesla and SpaceX, further igniting market imagination about their possible eventual merger.
On Wednesday, SpaceX officially released its S-1 prospectus, aiming to raise $75 billion, with a valuation of $2 trillion or higher. In the prospectus, the word “Tesla” appears 87 times—by comparison, “Musk” appears 174 times, and the cross-cooperation between the two companies in AI chip manufacturing, energy storage, board members, and other areas was disclosed one by one. The prospectus clearly states that the two parties "plan to explore other strategic cooperation areas in the future."
After the announcement, Wedbush analyst Dan Ives immediately released a research report, predicting that SpaceX and Tesla will complete a merger by 2027. Tesla’s stock fell slightly by 0.7% in after-hours trading, after closing up 3.3% at $417.26.
Cross-shareholding and cooperation network between the two companies
The links between Tesla and SpaceX go far beyond having the same founder. The prospectus shows that Tesla holds about 19 million shares of SpaceX—this stake comes from Tesla’s investment in xAI, which merged with SpaceX in February this year.
On the board level, Ira Ehrenpreis serves as a director for both companies; SpaceX board members Antonio Gracias and Steve Jurvetson have both previously served as Tesla directors.
Business cooperation is equally intensive: Leveraging its large-scale hardware procurement capability, Tesla helps SpaceX with supply chain purchases; SpaceX has purchased energy storage systems from Tesla; xAI has previously purchased services from Tesla; in addition, Tesla advertises on Musk’s X platform.
Joint bets on AI, "Terafab" as the key link
The strategic collaboration between the two companies in the field of artificial intelligence is one of the most notable new disclosures in the prospectus.
SpaceX plans to build orbital data centers (“orbital” appears 163 times in the prospectus), while Tesla is developing AI-driven self-driving taxis and humanoid robots. To meet the huge demand for advanced AI chips, the two companies are jointly building a chip manufacturing facility called "Terafab", with Intel involved in operations. The prospectus also disclosed plans for the creation of a digital AI assistant.
The prospectus characterizes the existing relationship as "a strong and constructive early foundation established through a series of limited but successful business collaborations,” cautious in wording but clear in direction.
Analyst: Merger may materialize in 2027
According to the Wall Street Journal, Wedbush's Dan Ives quickly released a report after the prospectus was made public, clearly projecting a merger in 2027. He noted that Tesla already holds SpaceX shares, and the joint Terafab facility binds the operations of the two companies even more deeply.
"Musk wants to own and control more of the AI ecosystem, step by step, and the ultimate goal may be to merge SpaceX and Tesla in some way, providing a link for these two disruptive tech giants committed to leading the AI revolution," Ives wrote.
However, a merger is nearly impossible before the IPO is completed. The market focus remains on the IPO itself—for now, with the S-1 publicly released, the roadshow is expected to start in about two weeks, and the IPO process may be completed by the end of June.
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