SpaceX and Tesla Discuss Merger, With Terms Unsettled

SpaceX and Tesla are negotiating a possible merger that could be announced as early as December 2026, though discussions may continue into early 2027 and no final terms have been agreed. The reported talks concern a combination of companies led by Elon Musk, with an estimated combined value of about $3.4 trillion to $3.5 trillion based on their reported valuations.

People familiar with the discussions said the companies have formed independent committees and hired advisers to examine transaction structure and terms. The committees are considering issues including governance and how the businesses would be combined. The reports do not establish an agreed price, share exchange or completion timetable, and a merger is not certain.

Tesla’s annual shareholder meeting is scheduled for December 3, 2026, but the company has not announced a vote on a merger proposal. Any transaction would require shareholder approval, while SpaceX’s approval process also involves its independent committee, board and controlling shareholder, according to a company filing cited in reporting.

The reported valuations place SpaceX above $1.9 trillion and Tesla at about $1.5 trillion. Those figures imply a...