Tesla Might Merge With SpaceX: Report

Completely happy Friday! It is January 30, 2026, and that is The Morning Shift — your each day roundup of the highest automotive headlines from world wide, in a single place. That is the place you may discover an important tales which can be shaping the best way Individuals drive and get round.

On this morning’s version, we’re Elon Musk’s company consolidation, in addition to China’s ever-increasing gross sales in Europe. We’ll additionally have a look at California’s work on emissions laws, and the return of the minivan.

Tesla is in a little bit of a bizarre spot proper now, as its automobile gross sales plummet and its CEO insists that it is a robotics and AI firm now. That is, after all, considerably redundant — Musk already has an AI firm, within the type of xAI and its on-demand CSAM supplier Grok. So, now, it appears Musk is trying to consolidate his empire. He is now trying to merge Tesla with… SpaceX. Or perhaps SpaceX with xAI. From Bloomberg:

SpaceX is contemplating a possible merger with Tesla Inc., in addition to another mixture with synthetic intelligence agency xAI, in response to folks aware of the matter, an indication billionaire Elon Musk is weighing the right way to consolidate his empire.

The agency has mentioned the feasibility of a tie-up between SpaceX and Tesla, an concept that some buyers are pushing, the folks mentioned, asking to not be recognized as the data is not public. Individually, they’re additionally exploring a tie-up between SpaceX and xAI forward of an IPO, among the folks mentioned.

Any transaction may appeal to sizeable curiosity from infrastructure funds and Center Japanese sovereign buyers, among the folks mentioned. A deal may additionally probably require a big financing part, certainly one of them mentioned.

No closing choices have been made, particulars may change and the businesses may resolve to stay separate, the folks mentioned. Musk and representatives for SpaceX, xAI and Tesla did not instantly reply to requests for remark.

SpaceX nonetheless appears to really earn cash, so it is a sturdy horse for Musk to hitch the unprofitable wagon of AI to earlier than the entire bubble pops. Will it assist, or simply take down the area firm? Will merging an area firm and a automobile firm that is pretending to be a robotic firm be good for both one? Who is aware of on both rely, however one factor’s for certain: The inventory costs will all the time, all the time go up.

BYD is now the largest EV-maker on the planetand it is pulling the Chinese language auto market alongside to new international heights. The nation now accounts for almost 10% of auto gross sales in Europe, because the continent retains shopping for EVs. From Bloomberg:

Chinese language automakers constructed almost one in 10 passenger vehicles offered in Europe final month, a document share that caps a 12 months of fast development led by brisk gross sales of hybrid and battery-powered automobiles.

With December’s 9.5% share of the European automobile market, Chinese language manufacturers outsold South Korean rivals together with Kia Corp. on a quarterly foundation for the primary time, based mostly on figures from researcher Dataforce. BYD Co. and its friends are poised to make additional inroads as commerce boundaries fall and a Chinese language export push accelerates.

The advance was strongest for the electrified vehicles that account for the majority of Europe’s development. Chinese language automakers used their aggressive edge in battery expertise to win clients for EVs and hybrid-electric automobiles from Spain to Greece, Italy and the UK.

Do not anticipate this proportion to drop any time quickly, and anticipate to see Canada and Mexico catch up someday quickly. Get able to study Chinese language, buddy. The age of Western dominance is raging in opposition to the dying of the sunshine, however the gentle’s dying all the identical.

The Trump administration is doing its finest to crack down on Californian emissions lawswhich drive the hunt for effectivity in lots of different U.S. states. California, for its half, is constant to set emissions restrictions unabated — because it fights the Trump admin in courtroom, it is nonetheless assembly with automakers. From Reuters:

California officers are assembly Detroit automakers this week to debate the following section of greenhouse gasoline laws for vehicles and vans, the state’s high air regulator mentioned.

California is combating within the courts and within the U.S. Congress in opposition to President Donald Trump’s efforts to dismantle landmark federal automobile emissions requirements. Governor Gavin Newsom plans an announcement subsequent week that may lay out particulars of a brand new $200 million electrical automobile incentive program that goals to assist fill the hole left after Trump’s price range invoice killed federal tax credit for brand spanking new electrical vehicles final 12 months, Lauren Sanchez, chair of the California Air Assets Board, instructed Reuters in an interview.

…

GM confirmed it was assembly with CARB in Detroit on Thursday and mentioned it “has lengthy historical past of dialogue and collaboration with CARB” and added “California has the 4th largest financial system on the planet and is a crucial marketplace for development and innovation.”

For many years, California has had among the nation’s dirtiest air. Different U.S. states have adopted its lead in setting guidelines geared toward decreasing hurt from air pollution.

Infighting between native governments and the nationwide authorities all the time goes nicely, proper? How’d it go for the Balkans?

I am an enormous proponent of the minivan as Household Trucksterand it appears the remainder of the US is coming round to agree with me. Minivans have been up within the U.S. and Canada for 2025, to a level that appears to shock everybody concerned. From Automotive Information:

Minivans. Mega-comeback. That finest describes the people-mover’s reputation in 2025.

The section that Chrysler, its CEO Lee Iacocca and Hal Sperlich, vice-president of product planning, created for the 1984 mannequin 12 months is having fun with a North American renaissance, discovering extra makes use of and new kinds of patrons.

Automakers offered 42,377 minivans in Canada in 2025, up 34 per cent over the earlier 12 months, in response to the Automotive Information Analysis & Information Heart in Detroit.

“It was the most important proportion achieve of any section, and each single automobile in that section had elevated gross sales, which is actually uncommon,” DesRosiers Automotive Consultants Managing Associate Andrew King mentioned.

In the US, 2025 gross sales have been up 20 per cent to 395,352, greater than 1 / 4 of which (110,006) have been Chrysler Pacificas inbuilt Windsor, Ont.

Volvo says wagons are cool once more, now gross sales information says minivans are cool. Are crossovers now passe?

And thus, we obtained the RX-7 and the Miata. Blessed be.

I have been on an enormous Cherry Glazerr and Daddy Points kick lately, together with the requisite “The Nice Impersonator” from Halsey.