Bloomberg: Tesla–SpaceX Merger Talks Progress Toward December Reveal

Talks to combine Tesla and SpaceX are advancing, according to a Bloomberg report that cites people familiar with the discussions. An announcement could arrive as soon as December, though early 2027 has also been discussed as a possibility.

Such a deal would rank among the largest mergers ever. SpaceX is currently valued at about $1.90 trillion, and Tesla at about $1.55 trillion.

How We Got Here

Last month, Elon Musk said both companies had formed special committees of independent directors to consider a merger at shareholders’ request. He added that he believes a merger would be a good idea but cannot participate in negotiations because he is a conflicted party.

Approval at SpaceX is expected to be straightforward, as Musk controls more than 50% of the voting power. At Tesla, however, a merger would require support from 50% of all outstanding shares, not just the shares that vote, which Musk called “quite a high hurdle.” Tesla’s upcoming Annual Shareholder Meeting on December 3 does not include a merger proposal, so any vote would have to occur later.

Regulatory review could also be complex, given SpaceX’s U.S. defense contracts and Tesla’s business in China.

Two Close-Knit Companies

The companies already have significant business ties. In 2025, SpaceX purchased about $506 million in Megapacks and $130 million in Cybertrucks from Tesla, and the new flying Roadster was co-developed with SpaceX.

They are also partners on Terafab, a large chip manufacturing facility being built in Texas. Musk said during Tesla’s Q3 earnings call that Terafab should produce its first test chip around May or June 2027 and reach volume production by Q3 2028. Those chips will power Optimus, Cybercab, and the orbital AI data centers SpaceX plans to launch aboard Starship.

Some Tesla shareholders want the timeline accelerated. A letter urging the board to fast-track a deal gathered more than 6,400 signatures representing over 17.5 million shares.

Neither company has confirmed Bloomberg’s report. If talks continue smoothly, an official announcement could come within weeks, followed by what is expected to be a lengthy approval process at both companies and with regulators.