Elon Musk’s SpaceX, Tesla Merger Could Be Announced in December: Report

TLDR:

• Elon Musk’s Tesla and SpaceX may announce a merger in December, but neither company has agreed on final terms.
• Tesla and SpaceX formed independent board committees to review the merger, which would need shareholder votes.
• The proposed Tesla-SpaceX combination may be worth $3.5 trillion, based on the previously reported valuations.
• Tesla’s December 3 shareholder meeting approaches, but the company has not yet scheduled a vote on the merger.

Elon Musk’s SpaceX and Tesla could announce a merger as early as December, with negotiations between the companies reportedly advancing. The development follows Musk’s earlier support for combining SpaceX and Tesla, potentially creating a company worth approximately $3.5 trillion.

A November 12 Bloomberg report, citing people familiar with the discussions, said the companies were making progress toward an agreement. However, the negotiations remain ongoing, and a formal announcement could also slip into early 2027.

Both companies have established independent board committees to examine the proposed combination, which would require shareholder approval. The potential transaction would combine Tesla’s electric vehicles and robotics businesses with SpaceX’s aerospace, satellite, and artificial intelligence operations.

Elon Musk’s SpaceX and Tesla Advance $3.5 Trillion Merger Talks

SpaceX and Tesla have moved forward with discussions after forming independent committees to evaluate a possible business combination in October. The companies have also hired advisers to examine transaction structures, although neither has announced agreed terms.

BREAKING: SpaceX, $SPCX, and Tesla, $TSLA, could merge as soon as December in what would be the largest merger of all time, per Bloomberg.

The companies’ boards and advisors are now reportedly “hammering out” the terms of the agreement.

— The Kobeissi Letter (@KobeissiLetter) November 12, 2026

The proposed merger could value the combined businesses at approximately $3.5 trillion, based on valuations reported during October. SpaceX was valued above $2 trillion, while Tesla’s market capitalization stood near $1.5 trillion.

The negotiations follow Tesla’s October earnings report and growing SpaceX merger discussions. Musk previously confirmed that both companies had appointed independent directors to review the potential transaction.

During SpaceX’s October 20 earnings call, Musk said, “There’s a lot of merit to combining the companies.” However, he acknowledged that the proposed transaction remained uncertain and that the committees had not agreed on terms.

Musk has stepped away from the negotiations because he controls substantial interests in both companies. According to SpaceX’s regulatory filing, any agreement requires further approval from its committee, board, and controlling shareholder.

Meanwhile, Barclays analysts previously discussed a possible Tesla-SpaceX merger, identifying shareholder approval as a major requirement. The bank also examined an all-stock structure that would give Tesla shareholders an ownership stake in the combined company.

Tesla Shareholder Approval Remains Key to SpaceX Merger

Although negotiations are progressing, Tesla shareholders must approve any proposed combination before the companies can complete the transaction. Musk previously said the deal would require support representing at least 50% of Tesla’s outstanding shares.

The requirement creates a voting hurdle because uncast shares would not contribute toward the necessary approval threshold. SpaceX would also require approval from its controlling shareholder, according to its September quarterly filing.

The proposed structure follows SpaceX’s earlier disclosure about Elon Musk’s approval requirements. The company confirmed that its independent committee had not reached a decision on the potential transaction.

Meanwhile, the companies already cooperate across several technology projects, including artificial intelligence, energy storage, and semiconductor development. Musk has identified their shared computing ambitions as one reason for considering a merger.

Previous Tesla and SpaceX chip manufacturing discussions also involved Taiwan Semiconductor Manufacturing Company and the proposed Terafab project.

A merger would bring Tesla’s autonomous driving and robotics operations alongside SpaceX’s satellite networks and artificial intelligence infrastructure. However, neither company’s latest regulatory filing provides a final exchange ratio, purchase price, or completion date.

Tesla’s annual shareholder meeting is scheduled for December 3, while the reported merger announcement could follow later that month. The companies have not announced a shareholder vote on the proposed transaction.