Kevin O’Leary Says Tesla-SpaceX Merger Is Inevitable After Flying Roadster Demo — ‘If You Own Tesla, You’re Gonna Own New Company’

Tesla (NASDAQ:TSLA) just put on a flying-car show, but "Shark Tank" investor Kevin O’Leary is looking past the stunt. He thinks the bigger story is a merger with Space Exploration Technologies Corp. (NASDAQ:SPCX), and he says shareholders of either company could end up owning both.

O’Leary Sees One Company 

O’Leary shared a video on X on Oct. 17 that he recorded with Meta (NASDAQ:META) smart glasses while visiting Thailand. He first talked through the practical problems of flying cars in cities, then turned to what Tesla’s latest Roadster demonstration means for investors.

"I think there’s no question that Tesla’s going to merge with SpaceX because that technology is coming together like this," O’Leary said.

He then laid out what that would mean for shareholders.

"So if you own Tesla stock, you’re going to own New Co," O’Leary said. "If you already own SpaceX, hang in. You’re going to own Tesla. It’s going to happen that way."

The Roadster Is a Sports Car With a Rocket Habit

His comments followed Tesla’s Oct. 15 demonstration of its long-delayed second-generation Roadster at SpaceX’s facility in Texas. An uncrewed prototype drove upside down up a ramp, launched into the air, performed midair flips and hopped over a lineup of Tesla vehicles before landing with the help of SpaceX-derived cold-gas thrusters.

Tesla also claimed a 0-to-60 mph time of 0.81 second during one run. Production is still targeted for 2028, though the most extreme thruster setups may not suit ordinary public roads.

The demonstration also put the overlap between the two companies on display. Tesla and SpaceX CEO Elon Musk has discussed collaboration across his businesses, including the proposed Terafab semiconductor project designed to support their growing computing needs. 

SpaceX has purchased Tesla Megapacks, Tesla has held SpaceX shares, and artificial intelligence chatbot Grok has been integrated into Tesla vehicles following SpaceX’s combination with xAI. The two companies also share interests in AI, computing infrastructure and advanced engineering.

Wall Street Is Already Doing the Merger Math

O’Leary is not the only one watching for a combination. Yorkville Ives Senior Managing Director Dan Ives has put the odds of a Tesla-SpaceX merger by the end of 2027 at 80%, pointing to the companies’ growing technological overlap and shared ambitions in AI.

Barclays analysts have also said a merger announcement could come before Tesla’s next annual shareholder meeting. The analysts said AI infrastructure and Musk’s desire to coordinate technology strategy across his companies could be motivations for a deal.

Any deal would raise questions about relative valuations, shareholder compensation and which company ends up acquiring the other. It would also need shareholder approval.

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