Musk Wants Tesla and SpaceX Together, but the Deal Faces Its Hardest Test Yet
Musk Wants Tesla and SpaceX Together, but the Deal Faces Its Hardest Test Yet
Musk had been laying the groundwork well before the latest announcement. In July, he said there was “more and more overlap” between Tesla and SpaceX as both pushed further into artificial intelligence and robotics.
That case crystallized on Tuesday, when Musk said the companies had formed special committees of independent directors, at shareholders’ request, to explore a possible combination. He called it a potentially sensible move as the companies approach what he described as a technological “superintelligence singularity,” arguing there was much to gain from closer cooperation. He has also publicly amplified the message that the committees—not him—will examine the proposal because of his conflict of interest.
The industrial logic is broad. Tesla’s batteries, autonomous vehicles, software and Optimus robots could be paired more tightly with SpaceX’s Starlink network, AI ambitions and planned orbital data centers. The businesses already collaborate, including on the Terafab semiconductor project; a merger could make it easier to shift engineers, investment and technology between them.
But Musk’s enthusiasm is only the opening bid. He told investors he could not join the committee discussions and that Tesla would require approval from 50% of all outstanding shares—not merely a majority of votes cast. “Quite a high hurdle,” he acknowledged.
The stakes are extraordinary: SpaceX is valued at roughly $2 trillion and Tesla at $1.5 trillion, putting a combined company near $3.5 trillion and potentially making it the largest merger ever. Yet that scale is also the source of the resistance. Analysts have warned that Tesla’s China operations alongside SpaceX’s U.S. defence work could invite national-security and regulatory scrutiny, while critics may question whether a deal further concentrates Musk’s power and increases key-man risk.
The committees now hold the practical control over terms. Shareholders, regulators and politicians may decide whether Musk’s vision of one corporate roof becomes a landmark deal—or remains an ambition too complicated to assemble.
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