Musk, who serves as CEO of both companies, said the special committees were formed at the request of shareholders and consist of independent directors (though he did not name them). He also noted that he is not a member of either committee, nor involved in any of the discussions.
“Because I’m a conflicted party, I can’t actually be in the discussions of the special committees,” Musk said. “So it’s an odd kabuki dance where two groups of people are talking and I can’t be in the conversation.”
The groups have not reached agreement on the terms of any transaction — and there’s no guarantee that they will. “At the end of the day, the shareholders have to be supportive of this,” he continued. “And particularly on the Tesla side, we will need a 50 percent vote of all shares, not just those who vote, but of all shareholders. And that’s quite a high hurdle to try to achieve.”
That said, Musk called the possibility of a Tesla-SpaceX merger a “good idea.” He continued:
I do think there’s a lot of merit to combining companies as we are pretty much in the superintelligence singularity. And there’s a lot to be gained from cooperating on developing superintelligence software, chip design, the TeraFab, obviously robotics, mass to orbit with the Starmind constellation, connectivity. So I think it would be a good idea, but it’s really up to the special committees of both companies. They’ve got to come up with something and then that’s going to be put to the shareholders as a vote.
A Tesla-SpaceX merger would be a blockbuster corporate deal creating a mega-entity valued upwards of $3.6 trillion. But combining Musk’s car and energy company with his AI and rocket company would not be without its tradeoffs. A lot depends on which company absorbs the other. To buy SpaceX, Tesla would have to create millions of new stock shares, which for current Tesla owners would mean owning a smaller slice of a much larger pie. SpaceX’s launch goals require tens of billions of dollars every year — extra spending that could drain Tesla’s ability to build new car factories and battery plants.
That said, most Wall Street analysts and legal experts believe SpaceX would acquire Tesla (or absorb it through a stock swap) rather than vice versa. Since its IPO, SpaceX has maintained a higher valuation than Tesla. A merger in that direction would allow SpaceX shareholders to hold the majority control of the combined mega-entity. Some Tesla shareholders may balk at this deal.
But it would also create one company for those who believe in Musk’s vision of the future — robot cars, humanoid robots, AI super-intelligence, and human habitats on Mars — in which to place their investments. And Tesla shareholder approved Musk’s enormous pay package last year — even after a Delaware judge tossed it over lack of independence.
Earlier this month, Barclays published a client note suggesting a potential Tesla-SpaceX combination could be announced ahead of Tesla’s annual shareholder meeting scheduled for December 3, 2026.
