Muskonomy Shakeup: SpaceX's Value Surpasses Tesla's After Merger with xAI
The world of Elon Musk's business empire, dubbed the 'Muskonomy', is undergoing a significant transformation. In a recent development, Musk has merged his space exploration company, SpaceX, with his artificial intelligence venture, xAI, marking a pivotal moment in his corporate strategy.
This merger comes as SpaceX's valuation approaches that of Tesla, Musk's electric vehicle giant. The combined value of SpaceX and xAI is estimated at $1.25 trillion, with SpaceX alone valued at $1 trillion. This is a substantial increase from Tesla's market cap of approximately $1.58 trillion, which, despite being impressive, is only 26% higher than SpaceX's valuation.
Musk's ownership stakes in these companies are also noteworthy. He owns 43% of SpaceX, making it the primary contributor to his paper wealth, which has soared past $852 billion. In contrast, Tesla's ownership is more modest at 13%.
However, Tesla's fortunes have taken a downturn in 2026, with a 6% decline in stock price and a 16% year-over-year drop in vehicle deliveries. The company's core auto business is facing challenges due to intense competition from electric vehicle manufacturers in China and Europe, and the recent removal of a federal tax incentive for EV purchases in the U.S. Musk's political ventures, including his association with the Trump administration and support for far-right figures, have also impacted Tesla's brand image.
To counter these setbacks, Musk is shifting Tesla's focus to its Robotaxi ride-hailing and Optimus humanoid robot projects, areas where the company currently has no significant presence and faces stiff competition.
SpaceX, on the other hand, is in a strong position. As a leading provider of orbital launch services, it has secured lucrative contracts with NASA and the Department of Defense, generating billions in revenue annually. SpaceX also operates the Starlink satellite internet service, which has over 9,000 satellites in orbit and serves approximately 9 million customers. The company's town, Starbase, Texas, further underscores its influence in the space industry.
The merger between SpaceX and xAI raises questions about the future of the 'Muskonomy'. While SpaceX's strong market position and potential IPO make it an attractive prospect, the merger also brings legal and regulatory challenges. xAI is under investigation in several countries for its Grok image generator, which has raised concerns about the creation and sharing of explicit deepfake images.
Despite these challenges, the merger could provide Musk with the opportunity to develop orbital data centers, a project that has faced technical and financial hurdles. The 'Muskonomy' continues to evolve, and its future success will depend on addressing these challenges and maintaining the empire's stability.
