Elon Musk is laying the groundwork for a Tesla-SpaceX merger.

During SpaceX's earnings call Tuesday, Elon confirmed that both companies have formed special committees to explore a merger.

When asked whether he thought it was a good idea, his answer was simple…

"Yes."

Prediction market Kalshi has put the odds of a merger before 2028 as high as 80%.

Source: Kalshi

It's far from a done deal. Shareholders would need to approve it, and then that leaves the regulatory uncertainty.

While this would easily be the biggest merger of all time, I don't see a great opportunity in either SpaceX or Tesla's stock.

I expect both to trade in a volatile range while the merger details and approvals are worked out.

But I believe a deal could create huge opportunities in several other companies.

Some could become takeover targets for Musk…

Others might be bought by rivals looking to compete…

Still others could gain from the billions Musk plans to spend.

I've identified three stocks that could benefit in a big way. And I’ll give you the names of each one.

But first, let’s talk about why Elon wants this merger now. It all boils down to seven reasons.

1. Elon Is Creating the Ultimate Tech Empire

Elon has spent years building the pieces of an awesome business empire.

Tesla makes electric vehicles, develops self-driving tech, and builds humanoid robots.

SpaceX launches rockets, operates the Starlink network, and, through xAI, develops advanced artificial intelligence.

Together, they would create a remarkable entity.

One company would control the AI brains, robots, vehicles, communications networks, and the infrastructure connecting them all.

Imagine millions of Tesla robotaxis and Optimus robots connected through Starlink, with AI driving the entire system.

The companies already cooperate in several areas. A merger could speed up that work and make it more efficient.

For Elon, the appeal is clear.

2. Building an Empire Takes Money

Elon's plans require vast amounts of capital.

Tesla has spent an estimated $50 billion on capex in its history, and the space business has spent $20 billion.

That's a combined $70 billion.

Now, he’s saying he’ll spend another $35 billion in Q4 2026 alone!

So, in two quarters, he will spend more than he did in 20 years with these two huge companies. And that's before the full cost of Tesla's robotics and self-driving plans.

Meanwhile, OpenAI, Anthropic, Google and other rivals are racing to build more powerful AI systems.

Elon needs money, and lots of it.

On CNBC Wednesday, Altimeter Capital's Brad Gerstner explained why a merger could help:

"He wants to accelerate scale now because if you have scale around capital and you put the companies together, it's easier to borrow money."

That's the key.

A larger, more diverse company with huge assets and cash flow could gain greater access to credit markets, perhaps at lower rates.

In a race where capital is key, that could provide a major advantage.

3. Elon Could Raise $200 Billion in a Flash

Imagine Elon announcing a merger that creates a company worth roughly $3.5 trillion.

People would rush to invest in what could become the world's most powerful technology empire.

Why not exploit that excitement?

A $200 billion stock offering could provide a massive war chest for Elon's next moves.

That money could enhance AI development, expand Starlink, or fund major acquisitions.

It could also divert investor capital and attention from rivals like OpenAI and Anthropic, which also need massive funding.

Of course, $200 billion is just my scenario, not an announced plan. An offering like this would dilute existing investors, and demand isn't certain.

But the chance to raise large amounts of money during a merger-hype wave could be a strong incentive.

4. Elon Could Cement His Control

Elon's plans require more than money. They require control.

He owns roughly 20% of Tesla and about 48% of SpaceX. Yet SpaceX's share structure gives him almost 85% of its voting power.

A merger could reshape ownership of both companies.

In fact, Barclays analysts estimate Musk could gain 56% voting control of the combined company.

That would give him greater freedom to pursue long-term projects without constant shareholder pushback.

Of course, Tesla investors would have to approve the deal.

But his desire for greater control is obvious.

5. Elon Could Go on a Buying Spree

Elon doesn't just want to compete in current markets. He wants to reshape them.

Consider telecom.

SpaceX already operates Starlink and recently agreed to purchase $8 billion in wireless spectrum from Grain Management.

That's a major step toward becoming a broader mobile communications provider.

But building a nationwide ground-based wireless network could cost tens of billions of dollars.

Why not acquire one instead?

Imagine Elon buying an established telecom company and combining its cellular network with Starlink's satellite coverage.

Or he could acquire smaller companies with technology that could fast-forward his plans.

Such deals would face major hurdles. But a merged company with vast resources and valuable shares would have far more options.

6. The Political Window Is Open

Elon may also have a reason to move quickly, as a merger of this size will face intense scrutiny in Washington.

Trump will remain in office for another two years, and Elon maintains close ties to him.

While those political ties wouldn't guarantee approval, Elon likely believes the current administration would view the deal favorably.

And political conditions can change quickly.

If Elon believes the timing is good, why wait?

7. The Rockets Are Already in Flight

Perhaps the strongest evidence that a merger could happen is that the process has already begun.

Both companies have formed special committees to study a possible deal.

That's a big step forward beyond the idea investors have discussed for years. And Musk has already publicly endorsed the idea.

There's also an important date approaching.

Tesla's annual shareholder meeting is scheduled for Dec. 3.

That could provide Elon with a high-profile chance to update investors or even announce a proposed merger.

Again, this is all hypothetical (for now).

No merger vote is scheduled, and Elon has warned that Tesla would need support from holders of at least half its outstanding shares.

Still, with formal talks underway, the next several weeks could prove pivotal.

3 Stocks That Could Win Big

I'm watching three companies that could benefit from his next moves, whether through takeovers, rival deals, or a surge in spending.

T-Mobile (TMUS) operates one of America's largest wireless networks.

Buying it could give Musk quick access to millions of customers, nationwide infrastructure, and valuable wireless spectrum.

It's a risky possibility given the cost and legal barriers, but worth watching.

There's another possible takeover target, but not for Musk.

AT&T or Verizon could seek to buy AST SpaceMobile (ASTS) to gain its satellite-to-phone technology and better compete with Starlink.

Amazon, Google, or even a foreign government could also want access to its tech.

As Musk expands into wireless service, ASTS could become a prime takeover target.

This last one may be the most overlooked opportunity.

SBA Communications (SBAC) owns and operates cell towers.

If SpaceX builds a ground-based wireless network to strengthen Starlink, it could become a major new customer for tower operators.

Adding tenants to its towers would drive new revenue for SBAC without building anything.

A merger could increase demand for its services.

Now, I’m not necessarily saying to go out and buy these stocks today.

But they are three strong examples of companies to follow closely as events unfold.

Even though a Tesla-SpaceX merger isn’t guaranteed, I believe it’s highly likely.

Elon has the vision, the financial incentives, and now a formal path forward.

While Wall Street focuses on what happens to Tesla and SpaceX shares, I think the bigger story is what comes next.

A combined company could spend billions, buy new businesses, and force rivals to make bold moves of their own.

And some of the biggest gains could come from companies most investors aren't watching yet.

I'll keep you posted as this historic story unfolds.