SpaceX Surpasses Tesla in Private Valuation
Elon Musk’s SpaceX, after merging with his AI venture xAI, is now valued at $1.25 trillion (€1.06tn), narrowing the gap with Tesla, which sits at roughly $1.58 trillion (€1.34tn). On paper, this means Musk now draws more of his wealth from SpaceX than from his electric carmaker. Tesla has struggled in early 2026, with shares down about 6% after a 16% drop in vehicle deliveries in January and a 3% decline in 2025 revenue — its first annual fall on record. Competition in China and Europe, alongside the end of U.S. EV tax credits, has put pressure on the core business, while Musk’s political activity has added scrutiny to the brand.
Tesla Repositions Toward Robotics
As demand for electric vehicles softens, Musk is pivoting Tesla toward robotaxi services and Optimus humanoid robots, ventures that are still in early stages. Last week, he announced that production of the Model S and X, which accounted for less than 3% of 2025 deliveries, would end, with the lines repurposed for Optimus robots. The move reflects Tesla’s effort to diversify beyond traditional car manufacturing in response to a slowing EV market.
SpaceX Leads While Regulatory Risks Grow
SpaceX continues to dominate orbital launch services, with multi-billion-dollar contracts from NASA and the U.S. Department of Defense. Its Starlink network now operates over 9,000 satellites, serving around nine million customers. The merger values SpaceX at $1 trillion (€847bn) and xAI at $250 billion (€212bn), with Musk aiming to explore space-based data centers to bypass Earth’s energy constraints, though technical and financial challenges make a full rollout a long-term goal.
However, the deal carries new risks. xAI faces regulatory scrutiny in the U.S., Europe, India, and Malaysia over its Grok image generator, while French authorities recently raided X’s offices amid algorithmic abuse probes. Legal experts warn some risks could extend to SpaceX, especially with Starlink’s global operations. While private ownership allows Musk to manage these issues, a public listing could test investor confidence in the high valuation amid regulatory and political uncertainties.
