SpaceX and Tesla form committees to evaluate potential merger

SpaceX and Tesla have each formed independent special committees to explore a potential merger, Elon Musk confirmed on SpaceX's third-quarter earnings call on Tuesday, with negotiations at an early stage and no guarantee of an agreement.

Why it matters: A combination would consolidate Musk's listed companies into a single group spanning rockets, satellite service, electric vehicles, robotics and AI, and any deal needs the support of 50 percent of all outstanding Tesla shares, a threshold Musk himself called a high hurdle.

Data as of Investing.com report by Luke Juricic, published October 20, 2026 at 5:56 p.m. ET, read in full, reporting Musk's remarks on the SpaceX third-quarter earnings call, with the committee disclosure also reported by Axios on October 20, 2026. No valuation, exchange ratio or other deal terms have been stated. Developing item.

SpaceX and Tesla have each established independent special committees to explore a potential merger, Elon Musk confirmed during SpaceX’s third-quarter earnings call on Tuesday, saying the independent directors are actively evaluating a transaction but negotiations are in the early stages with no guarantee of an agreement. Musk, who acknowledged he is a conflicted party in the talks, said any deal would require the support of 50 percent of all outstanding Tesla shares, which he described as quite a high hurdle to achieve, and no valuation, exchange ratio or timetable was given. Tesla shares rose in after-hours trading after the disclosure, which came alongside SpaceX results showing third-quarter revenue of $14.6 billion and net income of $4.4 billion.

SpaceX and Tesla form committees to evaluate potential merger

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