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On October 20, 2026, Musk revealed that Tesla and SpaceX had each formed independent special committees of their boards to evaluate the possibility of a merger between the two companies. According to an October 27 report by Huxiu, Musk publicly supports the merger but acknowledged a conflict of interest and is not directly participating in negotiations between the two special committees; based on market valuations at the time, SpaceX was about $2 trillion and Tesla about $1.5 trillion, for a combined total of roughly $3.5 trillion, and the transaction remains in the research stage with no terms reached yet. An October 28 report said that under a post-merger scenario Musk's voting power is estimated at perhaps 57% to 58%, and the transaction would still require Musk's approval, review by Tesla's special committee, and possibly shareholder approval, with the share exchange ratio and shareholder protection arrangements being key.
AI-generated from public reports
Latest development · Report
SpaceX and Tesla Study Potential Merger, Musk Consolidates AI Compute FootprintDevelopments
1 confirmed developments
Musk reveals Tesla and SpaceX have formed special committees to evaluate merger
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Reports and discussion timeline
Browse reports and discussion by time. Their evidence levels remain distinct.
Oct 30
TMTPost · AGI
SpaceX and Tesla Study Potential Merger, Musk Consolidates AI Compute Footprint
Bloomberg reported on October 27 that Musk's SpaceX and Tesla are studying a potential merger through a special committee, and the combined market value would exceed $3 trillion once the deal closes. The article says the two companies already overlap on the Terafab chip project; SpaceX's AI business unit SI posted third-quarter revenue of $7.56 billion, up 830% year over year, with computing capacity of 1.7 gigawatts as of the end of September. The article also notes that SpaceX's Grok 4.7 scored 37.6% on the Terminal-Bench leaderboard, trailing Opus 5 with Claude Code at 53.9% and GPT-6 Sol with Codex at 49.4%.
Oct 28
Huxiu
Tesla and SpaceX Evaluate Merger; Musk's Voting Power Could Rise to 57%-58%
Tesla and SpaceX have each established independent special committees of directors to evaluate the possibility of a merger between the two companies, with a combined valuation of approximately $3.5 trillion based on valuations at the time; the transaction has not yet reached terms. The author argues that the core of the merger is not merely AI, computing power, and manufacturing synergies, but rather a restructuring of capital allocation rights and voting control: Musk holds about 85% of voting power in SpaceX and about 20% in Tesla, and scenario estimates suggest that after the merger his voting power could reach 57%-58%, meaning original Tesla shareholders might hold more assets yet find it harder to influence major decisions. The transaction also requires Musk's approval, review by Tesla's special committee, and possibly shareholder approval, with the share exchange ratio and shareholder protection arrangements being key.
Oct 27
Huxiu
Why Tesla and SpaceX Still Want to Merge: The Capital and Shareholder Challenges Behind a $3.5 Trillion Deal
Musk publicly supports a Tesla-SpaceX merger but acknowledges a conflict of interest and will not directly participate in negotiations between the two sides' special committees. Both companies have separately established independent director special committees to study a potential transaction. Based on market valuations at the time, SpaceX was worth about $2 trillion and Tesla about $1.5 trillion, for a combined total of roughly $3.5 trillion. The deal is still in the research stage and no terms have been reached. The article notes that the two sides already collaborate on the Terafab chip project, AI compute, and Megapack energy storage procurement. The core of the merger lies in unifying capital allocation, but the exchange ratio involves the distribution of hundreds of billions of dollars in shareholder interests, and it must also contend with the SolarCity litigation precedent and cross-border regulatory review.