SpaceX and Tesla form special committees to explore possible merger

Summary

SpaceX and Tesla have each formed special committees of independent directors to explore a possible merger, Elon Musk said on SpaceX's third-quarter earnings call on Tuesday, October 20. Musk, who is CEO of both companies, said he is a conflicted party and cannot take part in the discussions, but that he thinks a combination would be 'a good idea' and that there is 'a lot of merit' to it, with much to be gained from cooperation on AI, chips, robotics and connectivity. He said a deal is not certain and that approval from 50% of Tesla shareholders would be a high hurdle. On Tesla's earnings call on Wednesday, Musk said there would be no questions on the matter and that he had said everything that should be said about a potential merger. Any combination would be very large, with SpaceX's market cap above $2 trillion and Tesla's nearly $1.5 trillion, according to Axios.

Timeline

1. The Verge

   20 Oct 2026, 21:30 UTCSource ↗

   The Verge reports that Tesla and SpaceX have formed special committees to discuss a possible merger, which Musk said during SpaceX's third-quarter earnings call on Tuesday.

2. Axios

   20 Oct 2026, 21:43 UTCSource ↗

   Axios reports that Musk said a combination would be 'a good idea' but that a deal is not certain, because 50% of Tesla shareholders would need to approve it.

3. Financial Times

   20 Oct 2026, 21:56 UTCSource ↗

   The Financial Times reports that the SpaceX and Tesla boards are exploring a potential merger, and that Musk said combining his two public companies would be a 'good idea'.

4. South China Morning Post

   20 Oct 2026, 23:35 UTCSource ↗

   The South China Morning Post reports that Musk said the companies have formed special committees to explore a potential merger, a preliminary step toward what would be the largest corporate tie-up of all time, and that he is not taking part in those discussions.

5. Deutsche Welle

   21 Oct 2026, 05:53 UTCSource ↗

   Deutsche Welle reports that Musk confirmed long-standing speculation of a possible merger but warned that it would be premature to assume it is happening for sure.

6. Engadget

   21 Oct 2026, 08:40 UTCSource ↗

   Engadget reports that the companies have formed special committees to discuss a merger, but that Musk says it is not a certainty.

7. TIME

   21 Oct 2026, 08:45 UTCSource ↗

   TIME reports that Musk, the CEO and largest shareholder of both companies, said a merger would be a 'good idea' and that the companies had formed committees to discuss the possibility.

8. The Guardian

   21 Oct 2026, 23:03 UTCSource ↗

   The Guardian reports that Musk said there is 'a lot of merit' to a potential merger that would require approval from 50% of Tesla shareholders, and that he declined to elaborate on it during Tesla's earnings call.