Musk says SpaceX and Tesla have set up committees to study a merger
In short
Elon Musk said on 20 October that special committees have been set up at SpaceX and Tesla to discuss integrating the two companies. He said the committees have not yet agreed terms and that shareholder support is required. Musk himself is not taking part in the talks because of a conflict of interest.
Read the full story 2 min read
Elon Musk said on 20 October that special committees have been set up at SpaceX and Tesla to discuss integrating the two companies. He made the disclosure at SpaceX's earnings call, according to Japanese outlets. Yomiuri Shimbun wrote that the long-rumoured idea has now entered a concrete stage of study. [ 1 , 2 , 3 , 4 , 7 , 9 , 10 , 11 , 13 ]
The committees were set up at shareholders' request and consist of independent directors, according to ITmedia, Kyodo and Yomiuri. Musk is not taking part in the discussions because he is an interested party. Yomiuri noted that he is a major shareholder in both companies and heads both. Musk said the two committees have not yet agreed on terms and that there is no guarantee they will. [ 3 , 4 , 5 , 7 , 9 , 10 , 11 ]
ITmedia reported that Musk made the remarks in answer to an analyst from Deutsche Bank. He said a merger is a good idea and listed possible cooperation on superintelligence software, chip design, the Terafab semiconductor plant, robotics and Starlink communications. Yomiuri quoted him as saying the value of making the companies one is large. According to TBS, citing Bloomberg, Musk said some people consider a merger certain and that he thinks that is overstating it. [ 4 , 5 , 11 ]
Musk said shareholder support is required. For Tesla, approval is needed from a majority of all outstanding shares rather than a majority of votes cast, which he called a high hurdle, ITmedia reported. Yomiuri said he holds over 80% of voting rights at SpaceX but about 20% of Tesla. ITmedia said the proposal drawn up by the two committees is expected to go to a shareholder vote. [ 3 , 4 , 5 , 10 , 11 ]
Bloomberg, via TBS, said a merger could be the largest corporate combination in history, putting SpaceX's market value at about $2 trillion and Tesla's at about $1.5 trillion. It said SpaceX shares rose 4.6% in after-hours trading after the results and Tesla shares 1.2%. A Nikkei headline on 22 October said SpaceX shares rose 12% and Tesla 4%. Bloomberg reported in January that SpaceX had considered a Tesla merger but chose to acquire xAI, and ITmedia said SpaceX merged with xAI in February. [ 4 , 5 , 14 ]
SpaceX also reported July-September 2026 net profit of about $4.4 billion. Yomiuri said it was the first net profit since the June listing, helped by surging AI-business revenue. [ 4 , 11 ]
Why it matters
Japanese business outlets say a combination would create a very large company spanning AI, electric vehicles, semiconductors and rockets. Musk and the outlets stress that no deal is assured, and Tesla's approval threshold is high.
Key facts
- Musk disclosed on 20 October, at SpaceX's earnings call, that special committees had been set up at SpaceX and Tesla to discuss integration. [ 1 , 3 , 4 , 5 , 7 , 9 , 10 , 11 , 13 ]
- The committees were set up at shareholders' request and are made up of independent directors. [ 4 , 7 , 9 , 10 , 11 ]
- Musk is not taking part in the talks because he is an interested party. [ 3 , 4 , 5 , 7 , 9 , 10 , 11 ]
- The committees have not agreed terms, and there is no guarantee a deal will be reached. [ 3 , 4 , 5 , 11 ]
- Musk called a merger a good idea but said it needs shareholder support and that the hurdle is high. [ 3 , 4 , 10 , 11 ]
- SpaceX reported net profit of about $4.4 billion for July-September 2026. [ 4 , 11 ]
Confirmed by several sources
- Special committees to discuss integration have been set up at both SpaceX and Tesla, as Musk disclosed at SpaceX's earnings call on 20 October. [ 1 , 2 , 3 , 4 , 5 , 7 , 9 , 10 , 11 , 13 ]
- The committees were set up at the request of shareholders. [ 4 , 7 , 9 , 10 , 11 ]
- Musk is not participating in the committees' discussions because of a conflict of interest. [ 3 , 4 , 5 , 7 , 9 , 10 , 11 ]
- The committees have not reached agreement on terms. [ 3 , 4 , 5 , 11 ]
- Tesla's side needs approval from a majority of all shares, not only of the votes cast. [ 4 , 5 , 11 ]
Still unclear
- Whether the merger will happen. Musk said there is no guarantee of agreement, that shareholder support is required, and that some people see the deal as certain, which he called overstating.
- The terms of any deal. Musk said the two committees have not yet agreed on terms.
- Musk's stakes in the two companies. Only Yomiuri gives figures, saying he holds over 80% of voting rights at SpaceX and about 20% of Tesla's shares.
- The size of the share price reaction. TBS, citing Bloomberg, gave after-hours gains of 4.6% for SpaceX and 1.2% for Tesla; a later Nikkei headline gave 12% and 4%, and the article text was not available.
What local media are saying
Timeline, local time
- Nikkei reports that Musk said a special committee has been set up to discuss integration of SpaceX and Tesla. [ 1 ]
- NHK reports Musk's announcement of the special committees. [ 2 ]
- TBS carries Bloomberg's report on the committees and Musk's comments. [ 5 ]
- Sankei carries a Kyodo report that the committees were set up at shareholders' request. [ 9 ]
- Yomiuri reports Musk's comment that the hurdle is high. [ 11 ]
- On 22 October Nikkei headlines that SpaceX shares rose 12% and Tesla 4%. [ 14 ]