SpaceX and Tesla Have Formed Committees to Discuss Potential Merger, Musk Says
Musk said the companies formed independent committees as shareholders weigh a deal that could unite their AI, robotics and connectivity businesses.
- Elon Musk announced that Tesla and SpaceX have formed "special committees of independent directors" to explore a potential merger, though he cannot participate due to conflicts of interest.
- SpaceX and Tesla have increasingly collaborated on chips, robotics, and connectivity, prompting the current exploration of a formal combination between the two companies.
- A combination would be massive, with SpaceX valued at more than $2 trillion and Tesla at nearly $1.5 trillion; Musk noted clearing the required 50% shareholder approval would be "quite a high hurdle."
- Tech analyst Gene Munster of Deepwater Asset Management believes there is a 95% chance a deal occurs in the next two years, saying "Believe me, shareholders would support this."
- Barclays previously suggested a potential combination could be announced ahead of Tesla's annual shareholder meeting on December 3, 2026, though Musk emphasized the committees have not reached agreement on terms.
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Watch Musk Teases SpaceX-Tesla Merger in Earnings Call
Elon Musk said SpaceX and Tesla have formed special committees to explore a potential merger, a preliminary step toward what would rank as the largest corporate tie-up of all time. Ed Ludlow shares the details.
Elon Musk says SpaceX-Tesla merger is a 'good idea', special committees formed for talks
SpaceX shares rose 4.9% in extended trading following the remarks. Speculation about a potential deal has grown in recent weeks, with Barclays suggesting last week that an announcement could come before Tesla's annual meeting in December. Musk has previously floated the idea, pointing to increasing overlap between the businesses. The merger discussions came as SpaceX reported its first profit as a public company.
"We are practically faced with the uniqueness of superintelligence, and there is great potential for profit in collaboration for the development of superintelligence software," he added.
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