A prominent Tesla (NASDAQ:TSLA) bull has stated that the odds are rising that Tesla could eventually merge with SpaceX and xAI, following Elon Musk’s confirmation that the private space company has combined with his artificial intelligence startup. 

Dan Ives of Wedbush Securities wrote on Tuesday that there is a growing chance Tesla could be merged in some form with SpaceX and xAI over the next 12 to 18 months.

“In our view there is a growing chance that Tesla will eventually be merged in some form into SpaceX/xAI over time. The view is this growing AI ecosystem will focus on Space and Earth together…..and Musk will look to combine forces,” Ives wrote in a post on X.

Ives’ comments followed confirmation from Elon Musk late Monday that SpaceX has merged with xAI. Musk stated that the merger creates a vertically integrated platform that combines AI, rockets, satellite internet, communications, and real-time data.

In a post on SpaceX’s official website, Elon Musk added that the combined company is aimed at enabling space-based AI compute, stating that within two to three years, space could become the lowest-cost environment for generating AI processing power. The transaction reportedly values the combined SpaceX-xAI entity at roughly $1.25 trillion.

Tesla, for its part, has already increased its exposure to xAI, announcing a $2 billion investment in the startup last week in its Q4 and FY 2025 update letter.

While merger speculation has intensified, notable complications could emerge if SpaceX/xAI does merge with Tesla, as noted in a report from Investors Business Daily.

SpaceX holds major U.S. government contracts, including with the Department of Defense and NASA, and xAI’s Grok is being used by the U.S. Department of War. Tesla, for its part, maintains extensive operations in China through Gigafactory Shanghai and its Megapack facility. 

Elon Musk has donated hundreds of generators to Tennessee residents still without power following a historic winter storm, as per an update from Governor Bill Lee. 

The donation comes as thousands of households have gone days without electricity amid freezing temperatures.

Musk donates generators

As noted in a report from WSMV4, the historic storm that hit Tennessee resulted in hundreds of thousands of residents experiencing a power outage at the end of January. Thousands are still living without power or heat in freezing temperatures for up to nine days.

As per TN Gov. Bill Lee in a post on X, Elon Musk and xAI have donated hundreds of generators to assist residents in affected areas. “Tennesseans without power need immediate help. I’m deeply grateful to @elonmusk & @xAI for going above & beyond to support Tennesseans by donating hundreds of generators to fill the gap, & I value their continued partnership to solve problems & support communities across our state,” he wrote in his post. 

Tennessee officials have stated that recovery efforts remain ongoing as crews work to restore power and address damage caused by the winter storm. The generators are expected to provide temporary relief for residents facing power outages during freezing conditions.

Tesla Powerwalls may follow

Musk publicly responded to the governor’s post while hinting that additional help may be on the way. This time, the additional support would be coming from Musk’s electric vehicle company, Tesla. 

“You’re most welcome. We’re working on providing Tesla Powerwalls too,” Musk wrote in his response to the official. 

Even before Elon Musk’s comment, Tesla had already extended help to affected customers in Mississippi and Tennessee. In a post on X, the official Tesla Charging account noted that all Superchargers in the two states are online, and free Supercharging has been enabled to help those in areas that are affected by persistent power outages. 

These include Grenada, Tupelo, Corinth, Southhaven, and Horn Lake in Mississippi and several Supercharging sites in Memphis, Tennessee. 

China will ban hidden door handles on electric vehicles starting 2027 under a new national safety standard, forcing automakers to equip their cars with mechanical exterior and interior handles. 

The rule effectively ends a design trend pioneered by Tesla and widely adopted across China’s electric vehicle market.

China bans hidden door handles

China’s Ministry of Industry and Information Technology (MIIT) noted that the new mandatory national auto safety standard on EV door handles will take effect on January 1, 2027. For models that have already received approval and are scheduled for launch, automakers will be allowed to complete required design changes by January 2029.

Under the new rules, exterior door handles must remain operable even in scenarios involving irreversible restraint system failures or thermal runaway incidents in the battery pack. Doors must also be capable of opening even if the vehicle loses electrical power. Interior doors must include at least one independent mechanical release handle per door as well.

Safety concerns drive rollback

Hidden and electrically actuated door handles have become mainstream in recent years as EV makers pursued cleaner styling and improved aerodynamics. Tesla pioneered the hidden handle design, and it was adopted by most Chinese EV manufacturers in either fully hidden or semi-hidden forms, as noted in a CNEV Post report. Today, about 60% of top-selling EVs in China use the design.

Chinese regulators have stated that the designs pose safety risks, particularly in crashes or power failures where doors may not open from the inside or outside. Authorities cited multiple fatal incidents in which occupants or rescuers were unable to open vehicle doors after collisions.

One high-profile case occurred last October, when a Xiaomi SU7, a vehicle designed to be a competitor to the Tesla Model 3, caught fire following a crash in Chengdu in southwest China. The driver died after bystanders were unable to open the doors. The incident sparked intense scrutiny over the SU7’s Tesla-inspired door handles.