SpaceX just became Elon Musk's most valuable company. The rocket maker's merger with his AI startup xAI values the combined entity at $1.25 trillion - just 26% below Tesla's $1.58 trillion market cap, according to documents viewed by CNBC. The deal marks a dramatic shift in the so-called "Muskonomy," with SpaceX now representing more than half of Musk's $852 billion fortune despite Tesla's decade-long run as his crown jewel.
The changing of the guard in Elon Musk's corporate empire became official Monday night. SpaceX, the rocket company that's been Musk's quieter bet for two decades, just absorbed his money-burning AI venture xAI in a deal that values the combined entity at $1.25 trillion. That puts it within striking distance of Tesla's $1.58 trillion market cap - a gap of just 26% that would've been unthinkable even a year ago.
The math tells the real story. Musk owns an estimated 43% stake in SpaceX compared to his 13% slice of Tesla, meaning the rocket maker now represents more than half of his $852 billion paper fortune, according to the Forbes Real Time Billionaires index. And while Tesla's stock has dropped 6% so far this year, SpaceX is reportedly prepping for an IPO that could cement its position as Musk's most valuable asset.
Tesla's stumble feels almost inevitable in hindsight. The EV maker reported a 16% year-over-year drop in vehicle deliveries in early January, followed by the company's first annual revenue decline on record - total sales fell 3% in 2025. The core auto business is getting hammered by Chinese and European EV competition, the elimination of the federal EV tax credit in the U.S., and what analysts delicately call "brand headwinds" from Musk's increasingly polarizing political activities.
