SpaceX's IPO prospectus unexpectedly read like a 'Tesla binding statement'—'Tesla' appeared 87 times in the document, and 'Musk' appeared 174 times. The two companies are jointly building an AI chip fabrication facility named Terafab, hold cross-shareholdings, and share board members. Wedbush analyst Dan Ives immediately predicted that the two companies would complete a merger by 2027.
SpaceX's IPO prospectus not only revealed the rocket company's financial details but also unexpectedly served as a public declaration of the deep interconnection between Tesla and SpaceX, further fueling market speculation about a potential eventual merger of the two companies.
On Wednesday, SpaceX formally filed its S-1 registration statement, aiming to raise $75 billion at a valuation of $2 trillion or higher. The term 'Tesla' appeared 87 times in the filing—compared to 174 mentions of 'Musk'—and disclosed extensive cross-collaboration between the two companies across multiple dimensions, including AI chip manufacturing, energy storage, and board membership. The prospectus explicitly stated that the two parties 'plan to explore additional strategic collaboration areas in the future.'
Following the announcement, Wedbush analyst Dan Ives immediately released a research report predicting that SpaceX and Tesla would complete a merger by 2027. Tesla’s stock dipped 0.7% in after-hours trading, following a 3.3% gain during regular hours that closed at $417.26.
Cross-shareholding and collaborative networks between the two companies
The connection between Tesla and SpaceX extends far beyond their shared founder. According to the prospectus, Tesla holds approximately 19 million shares of SpaceX—an equity stake stemming from Tesla’s investment in xAI, which merged with SpaceX in February this year.
At the board level, Ira Ehrenpreis serves on the boards of both companies; Antonio Gracias and Steve Jurvetson, current SpaceX board members, previously served on Tesla’s board.
Commercial collaboration is equally intensive: Tesla leverages its large-scale hardware procurement capabilities to assist SpaceX with supply chain sourcing; SpaceX has purchased energy storage systems from Tesla; xAI had previously procured services from Tesla; additionally, Tesla runs advertisements on X, another company under Musk’s leadership.
Joint AI bets: 'Terafab' emerges as a key link
Strategic synergy between the two companies in the field of artificial intelligence was among the most closely watched new disclosures in the prospectus.
SpaceX plans to build orbital data centers (the term 'orbital' appears 163 times in the prospectus), while Tesla is developing AI-powered autonomous robotaxis and humanoid robots. To meet the substantial demand for advanced chips driven by AI applications, the two companies are jointly constructing a chip fabrication facility named 'Terafab,' with Intel slated to participate in its operations. The prospectus also revealed plans to develop a digital AI assistant.
The prospectus characterizes the existing relationship between the two parties as 'an early foundation for a strong and constructive partnership, built through a series of limited but successful commercial collaborations,' wording that is cautious yet directionally clear.
Analyst: Merger Could Materialize in 2027
According to The Wall Street Journal, Dan Ives of Wedbush swiftly issued a report following the release of the prospectus, explicitly forecasting a merger in 2027. He noted that Tesla already holds shares in SpaceX, and the jointly established Terafab facility further deeply integrates the operations of the two companies.
"Musk wants to own and control more of the AI ecosystem—step by step, with the ultimate goal potentially being some form of merger between SpaceX and Tesla to create a connective link between these two disruptive tech giants driving the AI revolution," wrote Ives.
However, a merger is almost certainly impossible before the IPO is completed. Market attention remains squarely focused on the IPO itself—with the S-1 now public, the roadshow is expected to commence in approximately two weeks, and the entire IPO process is anticipated to conclude by the end of June.