New York, Feb 1, 2026, 09:50 EST — Market closed.
- Tesla closed Friday up 3.3% at $430.41, fueled by reports of potential deal talks involving Musk’s empire.
- Investors are trying to gauge how a SpaceX-xAI partnership might impact Tesla’s efforts in autonomy and robotics.
- Attention shifts to any further comments before Monday’s reopening and important U.S. data due later this week.
Tesla (TSLA.O) shares climbed 3.3% to close at $430.41 on Friday, following reports that Elon Musk’s SpaceX is considering a deal that might bring Tesla closer to his AI startup, xAI. Earlier, the stock had jumped nearly 5%. Andrew Rocco, a strategist at Zacks Investment Research, said such a merger could be “dramatically” positive for investors. (Reuters)
The buzz arrives at a delicate time. Tesla has been pushing hard to sell investors on autonomy and robots as its next frontier, beyond just cars. The stock reacts sharply to any sign of progress—or distraction—linked to Musk’s broader ventures.
Earlier this week, Tesla announced a $2 billion investment in xAI, framing it as a boost to its self-driving and humanoid robot ambitions. Despite softer vehicle deliveries, the company still surpassed fourth-quarter revenue estimates, showing its EV operations continue to bankroll the strategic shift. (Reuters)
Bloomberg News revealed SpaceX has mulled a merger with Tesla, while Reuters reports SpaceX and xAI are discussing a deal ahead of a planned public offering later this year. Arthur Laffer Jr., Tesla investor and president of Laffer Tengler Investments, said the pieces “all fit together.” But John Streur from Boston Common Asset Management cautioned that lofty private-company valuations might prove “dilutive to Tesla shareholders.” (Reuters)
Any deal pulling Tesla into purchasing a private asset would probably require shareholder approval and test just how much freedom investors still grant Musk on spending decisions. Even supporters of the “Musk Inc” idea raise concerns about price, governance, and the challenge of valuing a private company versus a publicly traded stock.
SpaceX fueled its ambitions on Friday, filing with the Federal Communications Commission to launch up to 1 million satellites aimed at creating solar-powered AI data centers. The company claims the constellation would offer “transformative cost and energy efficiency” by harnessing near-constant solar energy. This move puts Elon Musk directly in the ring with AI heavyweights like Alphabet, Meta Platforms, and OpenAI. (Reuters)
This infrastructure angle supports a straightforward market story: affordable compute might set Tesla apart, assuming its robotaxi and robotics ambitions pan out. But it also sparks a fundamental question — who covers the costs, and where does the money land if these companies begin merging?
No deal has surfaced yet. The buzz around consolidation might vanish fast if both firms remain quiet or if investors start worrying that Tesla could overpay, diluting current shareholders.
Traders are watching closely how much cash Tesla will pour into advancing its AI plans, and if that spending will clash with its main car business. They’re also measuring Tesla against rival robotaxi projects, ranging from major tech companies to nimble startups.
U.S. stock markets were closed Sunday, so all eyes turn to Monday’s open on Feb. 2 for any fresh moves from Musk or the firms in question. Then, on Feb. 6 at 8:30 a.m. ET, the January jobs report arrives—a key number that could shake Treasury yields and growth stocks such as Tesla. (Bureau of Labor Statistics)
For now, the tape keeps circling the same question: is this a Musk-empire shakeup, or merely another weekend rumor with brief staying power?
