Billionaire venture capitalist Chamath Palihapitiya believes that a merger between two of Elon Musk’s high-profile tech firms could give birth to a modern version of Warren Buffett’s Berkshire Hathaway.
Citing people familiar with the matter, Bloomberg reports that SpaceX has discussed the feasibility of a tie-up with Tesla, an idea that some investors have actively pushed.
Separately, Musk has also explored a potential combination between SpaceX and xAI ahead of a possible initial public offering for the AI company.
The discussions are described as preliminary, with no final decisions made. The people say details could change, and the companies could ultimately remain separate. Any transaction would likely require a significant financing component and could attract interest from infrastructure funds and Middle Eastern sovereign investors.
Musk and representatives for SpaceX, Tesla and xAI did not immediately respond to requests for comment.
In a new post on X, Palihapitiya says a merger between SpaceX and Tesla “would instantly create” the Berkshire Hathaway of the modern era.
“The capital raising and operational efficiencies if both were together are obvious.
If this were to happen, it would also bring us one step closer to having one equity instrument for all things Elon, which many would want to buy.”
Berkshire Hathaway is a $1.03 trillion holding company that owns and manages a diverse collection of businesses across several major industries and maintains a massive portfolio of stock in other public companies. After taking over in 1965, Buffett transformed the business from a struggling textile company into an investment vehicle, acquiring and managing a wide array of firms.
Palihapitiya appears to be saying that a SpaceX and Tesla tie-up would pave the way for investors to buy one stock to back Musk’s projects.
Earlier this month, Palihapitiya predicted that SpaceX would never IPO and instead reverse merge with Tesla.
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