LemonTrades
TL;DR
- SpaceX began trading on the Nasdaq as SPCX on June 12, 2026, after pricing its IPO at $135 a share. It had merged with Musk’s AI company, xAI, earlier in the year.
- Tesla shares lagged after the listing, as some investors moved money into Musk’s other big public company.
- On October 20 Musk said both companies’ boards had formed special committees to study a merger. No deal has been agreed.
- LemonTrades scores every SpaceX and merger headline for Tesla the minute it breaks.
For years, Tesla was the only way to own a listed piece of Elon Musk’s companies. Since June, it isn’t. That changed who buys Tesla, and the merger talk that followed could change what Tesla is.
What happened
- January 2026: Tesla agreed to invest about $2 billion in xAI, Musk’s AI company.
- February 2026: SpaceX bought xAI in an all-stock deal.
- March 2026: Tesla’s xAI investment was converted into a small stake in SpaceX.
- June 12, 2026: SpaceX began trading as SPCX after pricing at $135. It opened at $150 and closed its first day at $160.95.
- September 2026: Bloomberg reported Tesla had fallen 8.9% in the three months since the IPO, while the S&P 500 rose 2.7%.
- October 20, 2026: on SpaceX’s earnings call, Musk said both boards had formed special committees of independent directors to look at a merger. SpaceX shares jumped about 8% to 10% the next day.
Why the IPO weighed on Tesla
- A new way to buy Musk. Some investors held Tesla partly as a bet on Musk himself. They can now buy SpaceX directly, and some sold Tesla to do it.
- Competition for AI money. With xAI inside SpaceX, investors wanting Musk’s AI ambitions have a second, more direct choice.
- Musk’s time. A public SpaceX means more of his attention on another listed company.
- Timing. Tesla was also dealing with falling profits and heavy spending, so it’s hard to separate the IPO’s effect from Tesla’s own news.
Tesla’s own SpaceX stake
Through its old xAI investment, Tesla owns a small piece of SpaceX, well under 1%. Tesla marks it to SpaceX’s share price every quarter: in Q3 2026 that meant a $142 million unrealized loss, as SPCX fell from its summer highs. It’s small next to Tesla’s $45 billion of cash and investments, but it means Tesla’s reported profit now moves a little with SpaceX’s stock.
What a merger would mean
Nothing is agreed, and Musk himself said calling a merger certain would be overstating it. He isn’t on either committee, because he has interests on both sides: he controls SpaceX and is Tesla’s largest shareholder. If talks go ahead, the key questions are:
- The price: how many SpaceX shares each Tesla share would be worth, and whether Tesla holders get a premium.
- Control: Musk would likely own more of the combined company than he owns of Tesla today, about 20%.
- The vote: Musk said Tesla would need a majority of all its shares, not just of those voting, which he called a high bar.
Musk’s stake explained: how much of Tesla Elon Musk owns.
What to watch next
- Any update from the two special committees, or a formal merger proposal.
- SpaceX joining major indexes, which would bring in index-fund money.
- The end of IPO lockups, which typically lets early holders sell about six months after a listing.
- Tesla’s Q4 results in late January 2027.
Follow the headlines as they land on Tesla stock news.
Sources
- Bloomberg: Musk says SpaceX, Tesla have formed committees to explore merger
- CNBC: SpaceX stock jumps after earnings beat
- Bloomberg: Tesla shares lag after the SpaceX IPO
- Bloomberg: Tesla converts its xAI investment into a SpaceX stake
- Electrek: Tesla Q3 2026 results
Education, not financial advice. See our disclaimer.
