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Musk says SpaceX and Tesla are exploring a merger, with no deal yet

Independent special committees at both companies are evaluating the idea, and at least 50% of Tesla shareholders would need to approve any deal.

Updated Oct 21, 2026 · 22:14 UTC6 reports

Latest update: SpaceX shares jumped over 8% in after-hours trading and Tesla rose 1.8% after Elon Musk announced committees are evaluating a potential merger.

The short version

  • Elon Musk said on a SpaceX earnings call that a Tesla-SpaceX merger is under active consideration.[Slashdot]
  • Special committees at both companies have been formed but have not agreed on terms, and there is no guarantee of a deal.[The Guardian · Engadget · Slashdot]
  • Any deal would need approval from at least 50% of Tesla shareholders, which Musk called a high hurdle.[The Guardian · Slashdot]

Key facts

  • Musk said during a SpaceX quarterly results call on Tuesday that a Tesla-SpaceX merger is under active consideration.[Slashdot]
  • Special committees made up of independent directors were formed at both Tesla and SpaceX to evaluate the potential transaction.[Deutsche Welle · Engadget]
  • The special committees have not reached agreement on the terms of any transaction.[The Guardian · Slashdot]
  • At least 50% of Tesla shareholders would need to approve a merger.[The Guardian · Slashdot]
  • Musk said he is a conflicted party and cannot take part in the special committee discussions.[Deutsche Welle · Slashdot]
  • Analyst Dan Ives estimated the merger could be valued at close to $5 trillion.[CBS News]
  • Al Jazeera reported that the two companies have a combined market capitalisation of about $3.5 trillion at current valuations.[Al Jazeera]
  • SpaceX shares rose 8% and Tesla shares rose 1.8% in trade following Musk's comments.[Deutsche Welle]

What remains uncertain

  • Whether a deal will be reached, and on what terms, is unknown because the committees have not agreed on terms.[The Guardian · Slashdot]
  • Valuation figures differ across reports: Al Jazeera cites a combined market capitalisation of about $3.5 trillion, while an analyst cited a possible value near $5 trillion.[Al Jazeera · CBS News]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.