Tesla, SpaceX, Starlink, xAI and The Boring Company: how Musk's companies fit together

Now that Tesla and SpaceX have set up special committees to study a possible merger, the ties between Elon Musk's companies matter more than ever for Tesla owners and investors. Some of those ties are long-standing, others are only months old. Here is how the pieces connect.

SpaceX and xAI: one company already

SpaceX merged with Musk's AI company xAI, the maker of the Grok chatbot, before going public in June 2026. The listing raised $75 billion at a valuation of about $1.77 trillion. So when people talk about a Tesla-SpaceX combination, they are effectively talking about bringing rockets, Starlink and Grok under the same roof as Tesla.

Terafab: the shared chip project

In March 2026, Musk announced Terafab, an AI chip complex in Austin, Texas, built by Tesla and SpaceX. It is designed as two factories, each making one chip design: one for Tesla's cars and Optimus robots, the other for AI data centers in space. Musk's argument is simple: his companies will eventually need more chips than the world can supply. He gave no timeline, and Reuters noted that several of his ambitious projects have slipped in the past. Musk has called Terafab one of the main areas where Tesla and SpaceX overlap.

Grok in your Tesla

xAI's assistant Grok is built into Tesla cars, has rolled out to more countries during 2026, and lost its beta label with software update 2026.38 at the end of September. For owners, this is the most visible link between the companies today.

Starlink on wheels

The Cybercab is the first Tesla with Starlink hardware built in, integrated into the rear of the car. In August, Musk said that all cars will have Starlink in the future, without naming Tesla models or a date. Tesla says connectivity is not needed for safe driving; it helps with navigation, customer support and fleet management, and covers areas without mobile coverage.

The Boring Company: Teslas in tunnels

The Boring Company runs the Vegas Loop, where Tesla cars carry passengers through tunnels between stations in Las Vegas, including trips toward the airport. The company says it will double its number of stations by the end of 2026, recently raised $3 billion at a $23 billion valuation, and has announced a new loop in Nashville. It is a small but steady showcase for Tesla vehicles, and a natural place for driverless Teslas in the future.

Money and hardware flowing both ways

• SpaceX has bought more than $100 million worth of Cybertrucks.
• xAI uses Tesla battery systems for its data centers.
• Tesla and SpaceX share engineering know-how in batteries, materials and manufacturing; the new Roadster was even developed with SpaceX.

Why it matters

Each company is valuable on its own, but the overlap is growing fast. For shareholders, a merger would mean owning a slice of rockets, satellites and AI alongside cars and energy. For owners, the practical effects are already here: an AI assistant in the dashboard, satellite connectivity on the way and chips designed for Tesla's own needs. Nothing about a merger has been agreed; the committees have only started their work.

This article is for information only and is not financial advice.