Musk’s Response to Tesla-SpaceX Separation
Musk was asked why Tesla and SpaceX remain separate companies. He replied, "Great question".[^1]
At the All-In Summit, Musk teased the potential integration of the two companies, stating, "Who could imagine what action one might take when there’s so much close collaboration in so many areas?"
Currently, a combination of the two would likely exceed the European Union’s merger thresholds, requiring approval from the European Commission before implementation.
Context and Collaborating Entities
- Terafab: A chip plant in Texas, jointly built by Tesla and SpaceX (spacex on 164news.com), supplying both companies with chips for their respective cars and satellites.
- xAI: Acquired by SpaceX in February 2026 and listed in June, raising a significant $75B in the largest initial public offering in history.
- SpaceX’s Starlink: A satellite internet service operating across most EU member states, though specific European sales figures are not publicly disclosed.
Regulatory Considerations
Under the EU Merger Regulation, a deal must be notified to the Commission if the combined global turnover exceeds €5B, and at least two parties have a turnover of more than €250M within the EU.
- Tesla: Meets both criteria based on its European car sales.
- SpaceX: Does not publicly disclose European sales figures, but Starlink operates across most EU states.
Potential Obstacles and Implications
- Regulatory Approval: The EU Commission would need to clear any deal, with an initial review phase lasting up to 25 working days, and a full investigation potentially reaching 125 days.
- International Views: Deals could face scrutiny from Washington and Beijing, particularly regarding SpaceX’s China business.
- Fines: Failure to notify or early closure can result in fines up to 10% of worldwide turnover.
The Commission is also investing €15.6B in its own satellite constellation, competing with SpaceX’s Starlink.
[^1]: “Great question” – Elon Musk