Musk says Tesla and SpaceX committees are examining a possible merger

Elon Musk said on Tuesday that special committees have been formed at Tesla and SpaceX to examine a possible merger of the two companies. He spoke during SpaceX's quarterly earnings call with analysts. Musk is chief executive of both companies.

Musk said he considers a merger a good idea. "Do I think it would be a good idea? Yes," the BBC quoted him as saying. He also said no deal is assured. "The special committees have not reached agreement on terms of any transaction and there's no guarantee that they will," he said, according to the BBC.

Musk said he is not part of either committee and described himself as a "conflicted party". The Verge quoted him as saying: "Because I'm a conflicted party, I can't actually be in the discussions of the special committees." According to The Verge, he said the committees were formed at the request of shareholders and consist of independent directors, whom he did not name.

Musk said any merger would need shareholder approval, including approval by 50% of Tesla shareholders, which he called a high hurdle. According to The Verge, he specified that this means 50 percent of all shares, not only of shares voted. He cited chips, artificial intelligence and software among the reasons a merger would make sense.

SpaceX went public earlier this year. Its market valuation has been higher than Tesla's since its stock market debut. According to the BBC, SpaceX acquired xAI and X (formerly Twitter), both owned by Musk, before going public. The BBC also reported that the two companies recently launched Terafab, a joint effort to manufacture computer chips.

Tesla shareholders approved a large compensation package for Musk last year. The BBC valued it at around $1 trillion. According to The Verge, it was approved after a Delaware judge had struck it down over a lack of independence.

What is disputed

The outlets give different figures for the companies' combined value. The BBC values Tesla at roughly $1.5 trillion and SpaceX at $2 trillion, a total of about $3.5 trillion. The Verge says a merger would create an entity valued upwards of $3.6 trillion. The two outlets also render some of Musk's remarks with slightly different wording. Neither cites an official transcript.

What each side says

Musk said a merger has a lot of merit. He cited cooperation on superintelligence software, chip design, TeraFab, robotics, mass to orbit and connectivity. He said the decision rests with the special committees and then the shareholders.

According to The Verge, most Wall Street analysts and legal experts believe SpaceX would acquire or absorb Tesla, for example through a stock swap, rather than the reverse. The Verge also reported that a Barclays client note suggested a combination could be announced before Tesla's annual shareholder meeting on 3 December 2026. This is an analyst view, not a company statement.

The reports reviewed by Vocemundi do not name the committee members. They do not include statements from the committees or either board. Beyond analyst expectations on structure and possible timing, they do not describe any agreed deal terms, structure or timetable.

Analysis

The review places a potential combination of two of the world's most valuable companies in the hands of independent committees, and ultimately shareholders. Musk's own description of the Tesla vote threshold suggests approval is not straightforward. Several outcomes remain possible: agreed terms put to a vote, a prolonged review, or no transaction at all. Governance questions may draw attention, given Musk's dual role and the earlier Delaware ruling on his pay package. Until the committees, boards or regulatory filings provide details, assessments of structure and timing rest on Musk's remarks and analyst views.

Produced by the Vocemundi newsroom with AI assistance.