Musk Backs a Tesla-SpaceX Merger, but Shareholders Hold the Key
Musk Backs a Tesla-SpaceX Merger, but Shareholders Hold the Key
The possibility of bringing Elon Musk’s two marquee companies under one roof has moved from speculation to a formal, if still early, process.
In July, Musk said there was “more and more overlap” between Tesla and SpaceX as both pushed deeper into artificial intelligence and robotics. Their collaboration already includes Terafab, a planned joint chip-manufacturing project; Tesla’s autonomous vehicles and Optimus robots could also draw more closely on SpaceX AI and Starlink connectivity.
Then, on Tuesday, Musk told SpaceX investors that both boards had created special committees of independent directors to explore a possible merger. He publicly endorsed the idea — “Do I think it would be a good idea? Yes” — but stressed that his positions as chief executive and major shareholder of both companies bar him from joining the talks. His repost on X echoed that the committees were formed at shareholders’ request and that he cannot participate because he is conflicted.
The prize would be immense: estimates put a combined Tesla-SpaceX value near $3.5 trillion. Musk argues that consolidating AI software, chip design, robotics, connectivity and energy systems could make cooperation easier. But the committees have not agreed to terms, and Musk cautioned against treating a transaction as inevitable: “Some people out there assume that a SpaceX and Tesla merger is a certainty, and I think that would be overstating it.”
On Wednesday, Tesla’s results underlined the tension. Revenue slipped to $28 billion and net income fell 43% to $787 million, even as the company accelerated spending and promoted robotaxis, the Semi and Optimus production. For Tesla, any merger would require approval from 50% of all outstanding shares — not merely votes cast — a threshold Musk called “quite a high hurdle.”
That leaves the proposed tie-up balanced between Musk’s industrial vision and the safeguards designed to keep that vision from deciding the deal on its own.
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