SpaceX and Tesla are progressing in their merger negotiations, and a deal could be announced as early as December, Bloomberg News reported on Thursday, citing people familiar with the matter. The two companies have also discussed a scenario in which the announcement slips into early 2027, the report said. Electrek, reporting the same Bloomberg account, said the talks have moved to terms, including price and control, with boards and advisers on both sides involved.
The scale has no precedent. SpaceX had a market capitalisation of about $1.90 trillion at last close and Tesla is valued at around $1.55 trillion, so a combination would create a company worth more than $3.4 trillion and unify Musk’s AI, robotics, EV and aerospace ambitions under a single corporate roof. It would also be the second Musk consolidation in a year, after SpaceX combined with his AI company xAI in February 2026.
The process is already on the public record. Musk said on SpaceX’s third quarter earnings call in October that a merger with Tesla would be “a good idea” and confirmed that both companies had formed special committees of independent directors to discuss a union, while cautioning that a merger was not a certainty and that he could not take part in the committees’ work because he leads both companies. Tesla’s third quarter Form 10-Q, filed on October 22, said its board had formed a special committee of disinterested directors to explore deepening Tesla’s relationship with SpaceX, including through a business combination, and that there was no assurance any transaction would be consummated. SpaceX’s quarterly report used the same wording and said any combination would need approval from its special committee, its board and its controlling shareholder. Musk has said a deal would need approval from a majority of all outstanding Tesla shares, not just a majority of votes cast.
Tesla’s annual shareholder meeting on December 3 is the nearest fixed date in the calendar, and the directors up for re-election at it are the ones who would sign off on a deal. Neither company commented on Thursday’s report, and no price, exchange ratio or governance terms have been agreed or disclosed. Reuters noted the proposed merger faces steep regulatory hurdles over SpaceX’s US defence contracts and Tesla’s reliance on China.
The two companies are already intertwined operationally. Their chip manufacturing joint venture, Terafab, should produce its first test chip around May or June of next year and aims to reach volume production by the third quarter of 2028, Musk said on the October call.