Tesla and SpaceX Committees Consider Possible Merger
Tesla and SpaceX have established separate special committees to consider a possible merger, Elon Musk said during SpaceX’s third-quarter earnings call. Musk, chief executive of both companies, said shareholders requested the committees, which consist of independent directors. He did not identify their members. Musk said he serves on neither committee and is not participating in their discussions because of his roles at both companies.
No terms have been agreed, and a transaction may not proceed. Musk said any agreement would require shareholder support. On the Tesla side, he said approval would require votes representing at least half of all shares, rather than half of the shares cast. He described that requirement as a significant obstacle.
Musk said he favors combining the companies, citing potential cooperation in artificial intelligence software, chip design, robotics, manufacturing, orbital infrastructure and connectivity. He said the independent committees would need to develop a proposal before shareholders could vote.
The account estimates that a combined company could be worth more than $3.6 trillion, although the financial effects would depend partly on how a deal was structured. If Tesla acquired SpaceX by issuing new shares, existing Tesla investors would own a smaller percentage of the combined company. SpaceX’s spending on launch projects could also compete with Tesla’s investment in vehicle and battery manufacturing.
Analysts and legal experts cited in the account generally expect SpaceX to acquire Tesla or combine with it through a stock swap, in part because SpaceX has carried the higher valuation since its public listing. Such a structure could leave SpaceX shareholders with majority control, an outcome some Tesla investors might oppose.
Barclays recently suggested a possible announcement before Tesla’s shareholder meeting, scheduled for December 3, 2026. For now, the committees’ deliberations remain preliminary, and neither company has announced an agreement or a shareholder vote.