Elon Musk is signalling a change of guard within his corporate empire with his intention to merge SpaceX with his money-burning artificial intelligence startup xAI. Musk owes a great deal of his fame and fortune to Tesla. However, after the merger on 2 February, SpaceX’s reported private market valuation was $1.25 trillion, while Tesla’s market cap was approximately $1.58 trillion, a difference of only 26%. While Musk only has a 13% ownership in Tesla, he is believed to hold 43% of SpaceX. According to the Forbes Real Time Billionaires index, Musk’s paper worth has soared above $852 billion, and SpaceX represents more than half of that value.Tesla Performance Going DownWith a 6% drop in stock price so far in 2026, Tesla’s worth has been falling since the beginning of the year. Tesla disclosed a 16% year-over-year dip in vehicle sales in early January and a 3% yearly revenue decline in 2025, the first decline on record, later in the month. The recent abolition of a federal tax credit for EV purchases in the US, along with intense competition from electric car manufacturers in Europe and China, has been a major setback for Tesla’s main auto industry.In addition to Musk’s involvement with… Read MoreStartupTalky- Business News, Insights and Stories
