New York, Jan 31, 2026, 12:56 ET — The market has closed.
- Tesla jumped 3.3% on Friday, standing out as other EV stocks dipped.
- Rumors of merger discussions involving SpaceX, xAI, and potentially Tesla have reignited interest in Elon Musk’s corporate empire.
- Investors are turning to Monday with eyes on follow-up disclosures and the U.S. jobs report released Friday.
Tesla shares closed Friday at $430.41, gaining 3.3% following renewed deal chatter involving Elon Musk’s companies, pushing the EV giant higher heading into the weekend.
This is significant since Tesla’s share price has been driven more and more by its claim to be evolving from a car manufacturer into an AI and robotics company. Merging with SpaceX or xAI would bolster that narrative and make investors reconsider what they’re actually holding.
Markets remain closed until Monday, leaving traders to see if the recent surge sticks once the headlines lose steam and focus shifts back to rates, cash burn, and the tough slog of moving cars off lots.
Reuters revealed SpaceX is eyeing deals with other Musk ventures, following its announcement of merger talks with xAI ahead of a planned SpaceX IPO. Tesla shareholder Gene Munster said it’s “highly likely” xAI will land with one of the two companies, while strategist Dennis Dick commented, “Musk has too many separate companies.” (Reuters)
According to a Reuters report, the proposed merger between SpaceX and xAI would involve exchanging xAI shares for SpaceX stock. Filings reveal that two entities were established in Nevada on Jan. 21 to manage the deal. Reuters noted it was unable to confirm the deal’s value, timing, or main purpose. (Reuters)
A separate Reuters analysis highlighted why folding Tesla into any deal is tougher, with battles over shareholder approval and valuation looming. Tesla investor Arthur Laffer Jr. said, “If you’re trying to build robots, and build autonomous cars, and build rockets, these things all fit together.” But John Streur from Boston Common cautioned that “if the valuations are extremely high it will be viewed as dilutive” — meaning it could lower the value per share for current investors. (Reuters)
Tesla flagged xAI on its radar earlier this week. The company confirmed a $2 billion investment in Elon Musk’s AI startup and restated that the Cybercab robotaxi is still set for production this year, Reuters reported. (Reuters)
Other EV stocks didn’t keep pace with Tesla on Friday. Rivian dropped 2.8%, Lucid fell 2.3%, and U.S.-listed Nio shares slid 1.3%, as investors offloaded growth stocks amid a widespread market sell-off.
Global markets dipped following President Donald Trump’s announcement of Kevin Warsh as his nominee to head the Federal Reserve, Reuters reported. The move reshuffled rate expectations. On Friday, the S&P 500 slipped 0.4%, while the Nasdaq slid 0.9%. (Reuters)
SpaceX has submitted a request to the U.S. Federal Communications Commission for permission to launch a network of as many as 1 million solar-powered satellites, Reuters reported Saturday. These satellites would function as AI data centers, signaling Elon Musk’s push for computing capacity that goes beyond the automotive sector. (Reuters)
The downside is clear. These discussions are still in their infancy, and any deal involving Tesla would spark questions about related-party transactions. Investors might hesitate if they suspect Tesla is being asked to overpay or assume risks better suited for private markets. It wouldn’t take much to set off a growth-stock selloff.
Trading picks up Monday, and all eyes will be on any official statements from Tesla or SpaceX. Investors will also look out for filings that might shed light on whether the “merger talk” turns into a deal with concrete terms.
Friday’s U.S. employment report for January, set for 08:30 ET, is the next key catalyst. This release frequently moves rate expectations and can trigger sharp moves in high-valuation stocks. (Bls)
