Space Exploration Technologies Corp. (SPCX), known as SpaceX, and Tesla Inc. (TSLA) are expanding cooperation across computing, energy, connectivity, manufacturing and artificial intelligence, renewing speculation about a possible merger. Morgan Stanley analysts led by Adam Jonas counted 71 mentions of Tesla in SpaceX's S-1 filing and said the companies share technology, talent and infrastructure, potentially positioning them to pursue physical AI (AI operating in the real world) separately or, more likely, jointly. The companies are building the Terafab chip factory in Texas with Intel Corp. (INTC), developing the Macrohard AI platform and exchanging products and capabilities. SpaceX bought $506 million of Tesla Megapacks and $131 million of Cybertrucks in 2025 for its Colossus compute cluster, while its filing showed $329 million of Megapack purchases in the first half of this year. SpaceX supplies Tesla computing capacity expected to reach 4.9 gigawatts by 2027 and Starlink connectivity beginning with Cybercab, while Tesla supplies data-collecting robots, energy-storage technology and manufacturing expertise. Merger speculation remains unconfirmed. SpaceX reported 2025 revenue of $18.67 billion, up 33% annually, but also reported a net loss and continued negative free cash flow. Its shares later traded at $153.16, up 0.87%, after recovering from an intraday low near $150.70 and extending a 10.9% monthly gain; the stock had previously closed at $151.85, down 0.56%, in another reported session.