Morgan Stanley has identified expanding technological and operational links between SpaceX (NASDAQ:SPCX) and Tesla (NASDAQ:TSLA), as the two Elon Musk-led companies pursue applications of artificial intelligence in robotics, energy and manufacturing.
In a note led by analyst Adam Jonas, the bank said the companies “share tech, talent, and infrastructure in a shared mission of converting energy to intelligence.”
The analysts described physical AI, which applies artificial intelligence to machines and real-world environments, as an area of increasing strategic importance for both businesses.
SpaceX Filing Details Areas of Cooperation
Morgan Stanley cited comments from SpaceX President Gwynne Shotwell ahead of the company’s initial public offering.
“There’s no question that there’s synergies between Tesla and SpaceX in our futures, definitely, there’s a convergence of a kind of what we’re all trying to accomplish in the future,” Shotwell said.
The bank identified 71 references to Tesla in SpaceX’s S-1 registration filing. Of those mentions, 34% concerned direct collaboration between the companies, while 41% related to governance matters and transactions between related parties.
The analysts highlighted several areas of cooperation, including Terafab, a semiconductor manufacturing project being developed in Texas with Intel. The facility’s total construction cost has reportedly been estimated at more than $119 billion.
SpaceX also purchases batteries and vehicles from Tesla. According to the figures cited by Morgan Stanley, these transactions included $506 million in Megapack energy storage systems and $131 million in Cybertrucks during 2025, supporting the Colossus computing cluster.
The companies are also jointly developing an AI agent platform called Macrohard.
Separately, both businesses are targeting annual vertically integrated solar manufacturing capacity of 100 gigawatts in the United States.
Computing, Connectivity and Robotics Form Part of the Relationship
Morgan Stanley outlined a reciprocal arrangement in which SpaceX provides Tesla with computing resources and satellite connectivity, while Tesla contributes robotics, energy storage systems and manufacturing expertise.
SpaceX’s computing capacity is projected to reach 4.9 gigawatts by the end of 2027, with terrestrial capacity expected to increase to 15.3 gigawatts by 2031, according to the estimates cited in the note.
Tesla is also integrating Starlink satellite connectivity into its vehicle range, beginning with Cybercab.
The analysts quoted Tesla Chief Financial Officer Bret Johnsen on the limitations of conventional communications infrastructure.
“Connectivity to a humanoid robot or an autonomous car or other any type of flying vehicle is not something that you’re going to do with terrestrial solutions,” Johnsen said.
Tesla, in turn, provides SpaceX with robots that could function as data collection points and distributed computing infrastructure, alongside battery storage technology and manufacturing capabilities.
Morgan Stanley noted that Tesla employs more than 135,000 people, over six times SpaceX’s workforce.
Analysts See Physical AI as a Potential Growth Area
Morgan Stanley expects investor attention to increasingly focus on artificial intelligence applications beyond large language models as those systems approach potential performance limits.
The analysts argued that robotics, autonomous vehicles and other technologies operating in physical environments represent markets that remain relatively underdeveloped.
While the bank sees limited direct exposure for either company to the market for leading large language models, it considers their combined capabilities relevant to the development of physical AI.
The analysts said this “reveals a wide open lane in physical AI that these two companies may be uniquely capable of addressing, separately or, more likely, jointly.”
The assessment reflects Morgan Stanley’s expectations rather than a confirmed outcome, with the scale and commercial impact of the companies’ planned initiatives yet to be established.
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