Tesla and SpaceX merger talks progress, sources say

Tesla and SpaceX are making progress in talks to combine, Bloomberg reported on 12 November, citing people familiar with the matter. They said a deal could be announced as early as December 2026, though an announcement in early 2027 was also discussed. The companies could not immediately be reached for comment.

The talks follow the formation of special committees of independent directors at both companies. On 20 October, during SpaceX’s third-quarter earnings call, Elon Musk, the chief executive of both, called a merger a good idea but said the committees had not agreed on terms and might not do so. He said they were formed at shareholders’ request.

A combination would bring Tesla’s and SpaceX’s electric-vehicle, robotics, superintelligence (SI) and aerospace ambitions under one company. Musk said cooperation on SI software, chip design, robotics, sending mass into orbit and connectivity could bring benefits.

Terms and approvals

Musk said his conflict of interest prevents him from taking part in the committees’ discussions. He holds more than 82% of SpaceX’s voting power and about 20% of Tesla’s, according to SpaceX’s public offering documents and figures cited by Ars Technica.

Law professor Carliss Chatman wrote that reported options include SpaceX buying Tesla with shares or putting both companies under a new holding company. Either approach would require decisions on the companies’ values, how shares would be exchanged, voting rights and control. If SpaceX bought Tesla, Chatman wrote, Tesla shareholders could receive shares in a company where Musk holds majority voting control.

SpaceX said in a quarterly securities filing that any transaction would need approval from its special committee, board and controlling shareholder, Musk. Musk said a Tesla shareholder vote would follow only if the two committees agreed on terms.

Chatman wrote that Tesla’s approval threshold is a majority of outstanding shares entitled to vote, so abstentions and votes not cast effectively count against a deal. She said Texas merger law does not prevent Musk from voting his Tesla shares.