Elon Musk confirms SpaceX and Tesla are exploring a potential merger

On October 20, 2026, during a conference call regarding SpaceX's quarterly earnings, Elon Musk confirmed that both Tesla and SpaceX have established independent special committees to evaluate a potential merger of the two companies. If completed, the deal would create a corporate giant with an estimated combined value of approximately $3.5 trillion, based on Tesla's $1.5 trillion valuation and SpaceX's $2 trillion market position.

Musk expressed personal support for the integration but emphasized that no formal agreement has been reached. He stated that he is recusing himself from the committees' deliberations due to potential conflicts of interest. The process, initiated following requests from shareholders, will require approval from at least 50% of Tesla's shareholders and various regulatory reviews before it can proceed. Musk warned that while the merger is being explored, it is not guaranteed and faces significant hurdles.