SpaceX Surpasses Tesla in Private Valuation
Elon Musk’s SpaceX, now merged with his AI venture xAI, has reached a $1.25 trillion (€1.06tn) valuation, closing the gap with Tesla, which currently sits at $1.58 trillion (€1.34tn). This shift means Musk now holds more of his wealth in space and AI ventures than in electric vehicles. Tesla’s value has slipped early in 2026, with shares down about 6% after reporting a 16% drop in January deliveries and a 3% decline in 2025 revenue — marking the company’s first annual decline. Increased competition in China and Europe, along with the end of U.S. EV tax credits, has weighed on the brand, alongside Musk’s politically controversial activity.
Tesla Shifts to Robotics Amid Slowing EV Sales
With electric vehicle growth slowing, Musk is pivoting Tesla toward robotaxi services and its Optimus humanoid robots, though both initiatives are still in early stages. Last week, he told analysts that production of the Model S and X — which made up less than 3% of 2025 deliveries — would end, and those assembly lines would be repurposed for Optimus. This move underscores Tesla’s effort to diversify beyond traditional car manufacturing and embrace emerging technology sectors.
SpaceX Leads While Regulatory Risks Loom for xAI
SpaceX remains dominant in orbital launch services, holding multi-billion-dollar contracts with NASA and the U.S. Department of Defense, and operates the Starlink satellite network with over 9,000 satellites and roughly nine million customers. The merger values SpaceX at $1 trillion (€847bn) and xAI at $250 billion (€212bn), aiming to explore space-based data centers to bypass Earth’s energy limits.
However, the merger introduces potential risks. xAI faces scrutiny in multiple regions, including Europe, India, Malaysia, and the U.S., over its Grok image generator and its use in producing explicit deepfake content. French authorities recently raided X’s offices amid algorithmic abuse investigations. Legal experts warn these issues could extend to SpaceX, particularly with Starlink’s international operations. While privately held SpaceX allows Musk to manage these risks internally, a public listing could complicate investor confidence in sustaining such a high valuation amid regulatory and political pressures.
