SpaceX Revenue Jumps 161% as Tesla Merger Talks Begin
Special committees at both companies are evaluating a combination following SpaceX's 161% revenue surge and rising congressional scrutiny.
SpaceX reported a 161% revenue increase, according to discussion on the Big Money Show panel, accelerating corporate deliberations that could reshape the structure of Elon Musk’s private and public holdings. The disclosure surfaced alongside confirmation that Tesla and SpaceX have formed special committees to evaluate a potential merger.
Musk called the combination “a good idea,” according to reports. Special committees at both companies are now tasked with assessing the transaction, a standard governance mechanism intended to shield boards from conflict-of-interest liability when a controlling figure sits on both sides of a deal.
The timing intersects directly with federal contracting scrutiny. Democratic lawmakers have outlined plans to investigate Musk’s businesses if they gain control of one or both chambers of Congress, according to Politico. Lawmakers have alleged conflicts of interest tied to contracts SpaceX and Tesla receive from federal agencies.
Musk responded on his X platform. “Live by the sword, die by the sword,” he wrote. He added that anyone picking fights with him should understand he will “find out who is really pulling the strings and come for them, not just their puppets.”
The political friction traces back to Musk’s work launching the Department of Government Efficiency (DOGE) at the start of President Donald Trump’s second term. DOGE drove deferred resignations and buyouts across federal agencies. The federal workforce contracted by roughly 250,000 employees during 2025, according to the Government Accountability Office (GAO).
Musk departed DOGE in late May after his 130-day status as a special government employee expired, returning full-time to his roles as CEO of Tesla and SpaceX. His exit followed disagreements with aspects of the administration’s policies.
DOGE’s operations previously sparked calls for investigations over its access to sensitive data, including Social Security records, and its role in withholding funds. A consolidated Tesla-SpaceX entity would centralize the financial architecture underlying those federal relationships.
SpaceX trades under the ticker SPCX at 159.31, up 7.79%. Tesla (TSLA) closed at 386.47, up 3.41%.
