Musk says SpaceX and Tesla have set up committees to study a merger, not a done deal
In short
Elon Musk said on SpaceX's third-quarter earnings call that SpaceX and Tesla have each formed a special committee of independent directors to study a possible merger. He said the deal is not certain, the committees have not agreed terms, and Tesla would need approval from 50% of all shareholders.
Read the full story 2 min read
Elon Musk said on SpaceX's third-quarter earnings call, held on 20 October local time according to Jiemian, that SpaceX and Tesla have each set up a special committee of independent directors to study a potential merger. As quoted by 36Kr and Jiemian, he said: "I think there are many benefits to merging the two companies, and cooperation in developing superintelligence software would be very beneficial." [ 3 , 4 , 5 , 7 ]
Musk stressed that the merger is not settled and needs shareholder support. He said Tesla would need approval from 50% of all shareholders, not only a majority of the shareholders who vote. "Some people think the merger of SpaceX and Tesla is a foregone conclusion. I think that is an overstatement," he said. IT Home and Huxiu reported that the two committees have not agreed on deal terms. Because he is CEO of both companies and holds large stakes, Musk said he has a conflict of interest and will not take part in the committees' discussions. IT Home, citing Bloomberg, said the boards formed the committees at shareholders' request. [ 2 , 3 , 5 , 7 , 8 ]
cnBeta said a merger would bring together Tesla's electric vehicle, energy and robotics businesses with SpaceX's rocket launch and Starlink businesses, and that the shared push into AI is an important logic behind it. It put SpaceX's market value at about $2 trillion and Tesla's at close to $1.5 trillion. Huxiu estimated the two together at about $3.7 trillion at 20 October after-hours prices. IT Home, citing Bloomberg, said the deal could be the largest corporate merger on record if it goes ahead. Huxiu quoted Musk as saying a Tesla-SpaceX merger would be more complicated than SpaceX's acquisition of xAI. [ 2 , 3 , 7 ]
The talk came with SpaceX's results. Huxiu reported third-quarter revenue of $14.575 billion, up 161% year on year, and net profit of $4.404 billion against a loss of $1.054 billion a year earlier. cnBeta reported SpaceX shares rose 4.5% after hours and Tesla shares 1%. Huxiu put the SpaceX gain at about 8%, and IT Home said Tesla rose about 1.2%. [ 2 , 3 , 7 ]
IT Home and Huxiu cited a Barclays view that SpaceX is more likely to be the acquirer and that news could come before Tesla's annual meeting on 3 December; Huxiu said Tesla has confirmed that date. IT Home noted that neither the companies nor Musk have formally committed to a deal. On 22 October, CLS and 36Kr carried a one-line report that SpaceX and Tesla are reportedly aiming to complete a merger in the first half of 2027. IT Home, citing the Bloomberg Billionaires Index, said an accelerated vesting of Tesla shares could add more than $110 billion to Musk's wealth if a deal is completed. [ 3 , 7 , 10 , 11 , 12 ]
Why it matters
Chinese business and tech outlets describe a deal that, if completed, could be the largest corporate merger on record, joining two of the world's most valuable companies. For now it is a study by committees, with no agreed terms and a shareholder vote still required.
Key facts
- On SpaceX's third-quarter earnings call on 20 October, Musk said SpaceX and Tesla had each set up a special committee to study a potential merger. [ 3 , 4 , 5 , 6 , 7 ]
- The committees are made up of independent directors; Musk, who is CEO of both companies and holds large stakes, said he has a conflict of interest and will not take part in their discussions. [ 3 , 7 ]
- The two committees have not agreed on deal terms, and the merger is not certain. [ 3 , 7 ]
- Musk said Tesla would need approval from at least 50% of all shareholders, not only a majority of the shareholders who vote. [ 2 , 3 , 5 , 7 ]
- Musk said some people think the merger is already settled, and that this is an overstatement. [ 2 , 5 ]
- cnBeta put SpaceX's market value at about $2 trillion and Tesla's at close to $1.5 trillion; Huxiu estimated the two together at about $3.7 trillion at 20 October after-hours prices. [ 2 , 7 ]
- SpaceX reported third-quarter revenue of $14.575 billion, up 161% year on year, and net profit of $4.404 billion. [ 7 ]
Confirmed by several sources
- SpaceX and Tesla have each formed a special committee to study a potential merger, as Musk said on the 20 October earnings call. [ 3 , 4 , 5 , 6 , 7 , 8 , 10 ]
- Musk said the merger is not certain and that Tesla needs approval from 50% of all shareholders, not just the voting majority. [ 2 , 3 , 5 , 7 ]
- Musk said the two committees have not agreed on deal terms and that he will not take part in their discussions because of his conflict of interest. [ 3 , 7 ]
- Musk said a merger of the two companies has many benefits, especially cooperation in developing superintelligence software. [ 3 , 4 , 5 , 7 ]
Still unclear
- Whether the companies aim to complete a merger in the first half of 2027. Only a one-line CLS item, repeated by 36Kr, says the two are reportedly aiming for this; it gives no source or detail.
- How much SpaceX and Tesla shares rose after hours. cnBeta says SpaceX rose 4.5% and Tesla 1%; Huxiu says SpaceX rose about 8%; IT Home says Tesla rose about 1.2%.
- Which company would be the acquirer and how a deal would be structured. IT Home and Huxiu cite a Barclays view that SpaceX is more likely to be the buyer, in an all-stock deal. Neither company nor Musk has committed to a deal.
- Whether a change-of-control clause in Musk's 2025 Tesla pay package would be triggered. IT Home says, citing Bloomberg, that this depends on the deal structure, with Bloomberg's estimate of over $110 billion added to Musk's wealth.
What local media are saying
Timeline, local time
- CLS reports on 21 October that Musk said a Tesla-SpaceX merger is not a done deal and needs shareholder support. [ 1 ]
- IT Home reports, citing Bloomberg, that both companies set up special committees of independent directors. [ 3 ]
- Jiemian reports that the committees were formed, according to Musk on 20 October local time. [ 5 ]
- Huxiu publishes earnings figures and merger background. [ 7 ]
- On 22 October CLS reports that SpaceX and Tesla are reportedly aiming to complete a merger in the first half of 2027. [ 11 ]