Charged: SpaceX considering potential merger with Tesla or xAI

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From the hotly-debated high-flier Tesla (TSLA), Wall Street’s newest darling Rivian (RIVN), traditional-stalwarts turned EV-upstarts GM (GM) and Ford (F) to the numerous SPAC-deal makers that have come public in this red-hot space, The Fly has you covered with “Charged,” a weekly recap of the top stories and expert calls in the sector.

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MERGER: A SpaceX and Tesla merger is under consideration, Bloomberg’s Edward Ludlow, Dinesh Nair, Loren Grush, and Kiel Porter report, citing people familiar with the matter. Company insiders are also exploring a tie-up between SpaceX and xAI ahead of an IPO, the report states, also noting that any transaction could attract significant interest from infrastructure funds and Middle Eastern sovereign investors.

DELIVERIES: XPeng (XPEV) announced its vehicle delivery results for January 2026. In January 2026, XPENG delivered a total of 20,011 vehicles. These deliveries are expected to reduce life-cycle greenhouse gas emissions by more than 300,000 tons – equivalent to the carbon absorption of 4.94 million tree seedlings over 10 years. The XPENG P7+ was launched simultaneously across 36 countries, and made its European launch at the 2026 Brussels Motor Show in January. As of December 31, 2025, XPENG has expanded its global presence to 60 countries and regions. Its overseas sales network now encompasses 380 physical stores, representing a year-over-year growth of more than 150%, while its worldwide sales and service network has grown to a total of over 1,000 outlets.

Li Auto (LI) also announced that it delivered 27,668 vehicles in January 2026. As of January 31, 2026, Li Auto’s cumulative deliveries reached 1,567,883. In January, Li Auto rolled out OTA update version 8.2 to users, introducing 40 new features and 25 experience optimizations, delivering comprehensive upgrades to its assisted driving, smart space, and smart electric experiences. As of January 31, 2026, the company had 547 retail stores in 159 cities, 547 servicing centers and Li Auto-authorized servicing shops operating in 221 cities. The company also had 3,966 super charging stations in operation equipped with 21,945 charging stalls in China.

Meanwhile, Nio (NIO) announced its January 2026 delivery results. The company delivered 27,182 vehicles in January 2026, representing an increase of 96.1% year-over-year. The deliveries consisted of 20,894 vehicles from the company’s premium smart electric vehicle brand Nio, 3,481 vehicles from the company’s family-oriented smart electric vehicle brand ONVO, and 2,807 vehicles from the company’s small smart high-end electric car brand FIREFLY. Cumulative deliveries reached 1,024,774 as of January 31, 2026.

MOVING TO THE SIDELINES: BMO Capital downgraded First Solar (FSLR) to Market Perform from Outperform with a price target of $263, down from $285. The firm “initially dismissed as aspirational” Tesla CEO Elon Musk’s remarks last week about potentially building a significant vertically integrated solar photovoltaic modules manufacturing base to self-generate. However, Musk’s remarks during Tesla’s earnings call suggest “this is likely to become a bona fide effort” in the next few quarters, the firm tells investors in a research note. BMO believes Tesla’s efforts could be an overhang on First Solar shares “for some time” and weigh on investor sentiment.