SpaceX Surges to Trillion-Dollar Valuation
Elon Musk’s SpaceX has reached a valuation of $1.25 trillion (€1.06tn) following its merger with artificial intelligence company xAI, bringing it closer to Tesla’s $1.58 trillion (€1.34tn) market capitalisation. On paper, this means Musk now holds more wealth tied to his space and AI ventures than his electric car business. The tie-up positions SpaceX as a central pillar in Musk’s empire, with xAI valued at $250 billion (€212bn) and SpaceX at $1 trillion (€847bn).
Tesla Faces Slowing Growth and Strategic Shift
Tesla has experienced a challenging start to 2026. Shares are down roughly 6% as the company reported a 16% drop in early January vehicle deliveries and a 3% decline in total revenue for 2025 — marking its first annual revenue fall. Competition in China and Europe, combined with the end of federal EV tax credits in the U.S., has placed pressure on Tesla’s core operations. Political controversies surrounding Musk have also weighed on the brand.
In response, Tesla is shifting its focus to robotaxi services and its Optimus humanoid robots, repurposing production lines from the low-selling Model S and X, which accounted for less than 3% of 2025 deliveries. While these initiatives are still in early stages, they reflect Musk’s attempt to diversify beyond traditional EV sales.
SpaceX Strength and Emerging Risks
Meanwhile, SpaceX maintains dominance in orbital launch services with contracts from NASA and the U.S. Department of Defense, alongside its Starlink satellite network serving nine million customers. Musk envisions the SpaceX-xAI merger enabling space-based data centres to bypass energy constraints on Earth, though technical and financial challenges make full-scale implementation a long-term goal.
However, the merger introduces new risks. xAI faces regulatory scrutiny over its Grok image generator in multiple countries, and French authorities recently raided X (formerly Twitter) offices amid algorithmic abuse investigations. Experts warn that such issues could spill over into SpaceX, particularly because Starlink operates internationally. While these complications are manageable while SpaceX remains private, a future public listing could raise investor concerns about valuation and regulatory exposure.
