Musk Explores Tesla-SpaceX Merger to Drive 5 Million Vehicle Goal

3 articles · Updated · Ars Technica · Oct 26

Five days after Tesla’s viral Roadster stunt, Elon Musk said Tesla and SpaceX are exploring a merger to speed Tesla’s autonomous-driving push and reshape how the company makes money.
75% of Tesla’s revenue still comes from car sales, but Musk is chasing higher-margin recurring income from software and AI services to help fund heavy spending against Big Tech rivals.
Chinese competitors are pressuring that strategy from both sides—winning EV share while investing aggressively in software and autonomous-driving technology.
Tesla’s sales target has already been cut from 20 million vehicles a year by 2030 to 5 million, still ambitious after 1.6 million deliveries last year.
Analysts say near-term growth toward that goal hinges on Full Self-Driving, which still requires a human driver to stay seated and fully attentive.