Tesla and SpaceX Form Special Committees to Discuss Potential Merger

Tesla and SpaceX are formally exploring a merger. During SpaceX’s Q3 2026 earnings call on Oct. 20, Elon Musk said both companies have formed special committees of independent directors to discuss the idea at the request of shareholders.

Musk said he can’t take part in the talks because he is a conflicted party. He added that he believes a merger would be a good idea, but cautioned against treating it as a certainty.

A High Bar for Tesla Shareholders

Musk noted that the committees have not agreed on terms for any transaction, and there is no guarantee that they will. Any deal would also need shareholder approval at both companies.

That is far easier at SpaceX, where Musk holds more than 50% of the voting power. At Tesla, Musk said a merger would need the support of 50% of all outstanding shares, not just those that vote, which he called “quite a high hurdle.”

Tesla’s 2026 annual shareholder meeting is set for Dec. 3, but its proxy does not include a merger proposal. Any vote would have to come at a later date.

Musk also stayed quiet on the topic during Tesla’s own Q3 earnings call the following day. Tesla’s investor relations team said executives would not address the merger, and Musk said he had already said everything that should be said.

Two Companies Already Closely Tied

Merger speculation has been building all year. SpaceX acquired xAI in February and went public in June, and the two companies already do plenty of business together. In 2025, SpaceX bought about $506 million in Megapacks and $130 million in Cybertrucks from Tesla. 

The two are also partners in Terafab, a chip fabrication project with Intel. Tesla’s new halo car, the Roadster, was also developed with SpaceX, as highlighted by its optional cold gas thrusters and its rocket-inspired paint and glass.

Some Tesla shareholders want the process to move faster. A letter urging the board to fast-track a deal gathered 6,493 signatures representing more than 17.5 million shares, and organizers planned to send it to the board today, October 26.

For now, the merger remains an idea that Musk supports, but it’s not a done deal. The next real sign of progress would be a formal filing from either company naming committee members, advisors, or proposed terms.