Tesla-SpaceX Merger Is Coming: Biographer Tells Investors, ‘You’re Investing In Elon Musk, Not Procter & Gamble’

• Isaacson also expressed confidence that SpaceX would become “a tremendously valuable company,” citing its role in low-Earth orbit internet, direct-to-cell service and potential orbital data centers. 
• Tesla invested $2 billion in SpaceX in the first quarter. 
• The rocket manufacturer is reportedly slated to go public as early as mid-2026, joining Tesla as the second of Musk’s companies to be publicly traded.

Elon Musk’s biographer Walter Isaacson believes Tesla and SpaceX will eventually merge into a single company.

In a CNBC “Squawk Box” interview on Thursday, Isaacson pointed to the companies’ existing collaboration on Terafab — the massive joint semiconductor fabrication plant under construction in Austin — as evidence of deepening ties that he expects to grow. 

“Elon Musk is always moving engineers back and forth, moving designs back and forth between his companies,” Isaacson said. “So I think your analyst is right. That’s in his heart. He wants to make this one big company.”

Isaacson also expressed confidence that SpaceX would become “a tremendously valuable company,” citing its role in low-Earth orbit internet, direct-to-cell service and potential orbital data centers.

He acknowledged some shareholder frustration over SpaceX’s February acquisition of Musk’s xAI startup, which diluted existing investors. But he downplayed the complaints by recalling similar backlash when Tesla bought SolarCity in 2016 — a deal many shareholders called dilutive.

“This is the way he’s built these trillion-dollar companies,” Isaacson said, adding that investors in Musk’s ventures are ultimately “investing in Elon Musk,” not in any single business. “If you don’t like the way Musk is going to do something, you should be investing in Procter & Gamble.”

Other Recent Deals

SpaceX announced on Tuesday that it has secured an option to acquire the artificial intelligence coding startup Cursor later this year for $60 billion. Under the agreement, SpaceX can alternatively pay Cursor $10 billion for their collaborative work if it chooses not to complete the purchase.

The deal pairs Cursor’s popular AI-powered code editor and its distribution to software engineers with SpaceX’s Colossus supercomputer — with the stated goal of building “the world’s most useful” AI models for coding and knowledge work.

In the first quarter, Tesla also invested $2 billion in SpaceX. The rocket manufacturer is reportedly slated to go public as early as mid-2026, joining Tesla as the second of Musk’s companies to be publicly traded. 

How Did Retail Traders React?

On Stocktwits, retail sentiment around TSLA stock stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘high’ levels.

Meanwhile, sentiment around SPACEX stayed within ‘bearish’ territory.

TSLA stock has gained 49% over the past 12 months. 

Read More: MSFT Plunges Toward Worst Day In Over Two Months On First-Ever Voluntary Employee Buyout

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