Musk wants to merge Tesla and SpaceX. However, he does not sit at the negotiation table himself.
Tesla and SpaceX have begun evaluating a potential merger. Elon Musk is in favor, but he leaves the negotiations to independent committees. No terms have been set for the deal yet.
Musk Supports the Merger
Elon Musk openly backed the possibility of a merger between Tesla and SpaceX. During a call on Tuesday regarding the company’s space achievements, he confirmed that both firms have established special committees of independent board members to assess a potential merger.
According to Musk, a merger makes sense due to the areas where the companies collaborate. He mentioned artificial intelligence, chip design, robotics, and connectivity. Among the joint projects is Terafab in Austin, focused on chip manufacturing.
The committees were created at the request of shareholders, and Musk does not directly participate in their discussions. This is because of his conflict of interest as he leads both companies. Nevertheless, he made it clear that he personally considers a potential merger to be a good idea.
It won’t work without shareholder support
The terms for a potential transaction have not yet been agreed upon. Musk also warned that it would be premature to consider the merger a certainty. The establishment of committees opens the door for specific negotiations, but the outcome remains uncertain.
Shareholder voting could be a significant obstacle. According to Musk, Tesla would need support from holders of at least half of all outstanding shares to reach an agreement. The absence of some investors would affect reaching this threshold.
Tesla has already encountered a similarly high hurdle. A proposal to change the board structure for 2025 received support from 39.4% of all shares and was rejected. Therefore, any merger would require broad support across the shareholder base.
The December vote remains in question
Tesla’s annual shareholder meeting is scheduled for December 3, 2026. The published agenda includes the election of board members, a advisory vote on executive compensation, and approval of an auditor. A proposal for a merger with SpaceX is not yet included in it.
According to Teslarati, Barclays analyst Dan Levy expected that a announcement would need to come by the end of October or early November for the December vote. If negotiations take longer, any potential deal could be discussed at an extraordinary shareholder meeting.
Meanwhile, SpaceX reported $14.58 billion in revenue for the third quarter, up 161% year-over-year, and $4.4 billion in net profit. Its valuation will be important in negotiating the terms under which the two companies might merge.
Sources:
Original text / Elektrickevozy.cz
Tesla – meeting agenda
SpaceX – third quarter 2026 results
Teslarati
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