Tesla and SpaceX form special committees to weigh a possible merger
Tesla and SpaceX have set up board committees to study a combination of the two companies, with Elon Musk sitting out the talks. Any deal would still need shareholder approval at both firms.
A possible merger between Tesla and SpaceX has become a formal review. Elon Musk, chief executive of both companies, said during SpaceX's quarterly earnings call on October 20, 2026 that each company's board has formed a special committee to examine the idea. The committees are assessing whether to bring the two companies under one roof.
Webtekno reported that a combined company could be worth close to $3.5 trillion. That figure is a possible total value cited in the report, not the price of an agreed deal, and no transaction has been signed.
Musk stays out of the committees
Musk holds a large stake in both companies, so he is not taking part in the talks because of a conflict of interest. Independent directors on each board are running the process. Musk described his exclusion as "a strange kabuki dance." Board members who are not considered independent, including his brother Kimbal Musk, are also left out of the discussions.
Musk said he believes a merger would be a good idea and pointed to preparing for the era of superintelligence. According to Webtekno, possible areas of cooperation include autonomous software, SpaceX's orbital data center Starmind, and Terafab, a joint chip manufacturing project between the two companies.
Shareholder approval required
The companies have not announced that the committees have reached a definitive agreement. If the committees approve a deal, it would go to shareholders at both companies. At SpaceX, Musk controls more than half of the voting rights. At Tesla, a merger would need the support of at least 50 percent of all outstanding shares.
Electrek reported that Tesla has prepared an automatic voting procedure that would allow shareholders to cast their votes in line with board recommendations by default. Retail investors hold a larger share of Tesla than they do in many companies, and their voting participation is usually low. Electrek also puts Musk's stake in Tesla at about 22 percent.
A merger could dilute Tesla shareholders' holdings. Electrek further claims that Musk's compensation packages at the companies provide for shares to be delivered in a merger regardless of operational targets.
This article was compiled with the help of AI from information published by Webtekno, Electrek.
