Talk of a possible Tesla-SpaceX combination is picking up as Elon Musk moves closer to bringing SpaceX to Wall Street.

TSLA stock is moving. See the price action here. 

The idea has reportedly been discussed by Musk with people around him, while some Tesla Inc. (NASDAQ:TSLA) employees have long viewed a future tie-up as plausible given the growing overlap between the companies, CNBC reported on Tuesday. 

Tesla and SpaceX reportedly already lean on shared engineering talent and have worked together on challenges involving energy, computing capacity and infrastructure.

AI Connection

The logic behind a potential deal is increasingly centered on artificial intelligence. 

Tesla needs advanced AI systems that can operate inside vehicles under strict limits on power use, cooling, latency and cost. 

SpaceX faces a different version ...