Speculation about a possible SpaceX-Tesla merger keeps growing, and for many investors it is a question of when, not if. Musk has not confirmed the deal because of regulatory risk, describing the topic as “tap dancing through a minefield” while saying there is “a lot of merit” in combining the companies. He says special committees have been formed to consider a merger, but he cannot take part as a “conflicted party,” and shareholders would need to approve any deal. The article suggests an announcement could come soon, but regulatory review would likely take much longer, and since both stocks are already highly valued, an announcement may not push either share price much higher in the short term.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
TSLAElon Muskmergers and acquisitionsSpaceX
Open a keyword to see other news on the same topic.
Related tickers and likely impact
TSLA
• NeutralTesla, Inc.
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.5T |
| Close on 10/26/2026 | 391.69 |
| Change that session | +5.23% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Hiltzik: Who would gain from a merger of Musk's SpaceX and Musk's Tesla? Take a wild guess
Musk called a possible merger of Tesla and SpaceX 'a good idea' with 'a lot of merit' on an October 20 call about SpaceX's third-quarter results, and Tesla shares rose about 3.4% the next day. Special committees at both companies are reviewing the deal, which would need shareholder approval, including more than 50% of all Tesla shareholders; Musk owned about 20% of the shares as of Sept. 30. The combined company would be a $3.5-trillion behemoth, America's fifth-largest by market value according to Reuters. The author argues that benefits from such mergers typically flow to insiders, pointing to the 2016 Tesla-SolarCity deal, after which Tesla shares fell more than 10% the day after it was announced.
- Elon Musk Says Merging SpaceX and Tesla Would Be a Good Idea. Here's What Investors Should Know.
Elon Musk has backed a potential merger of Space Exploration Technologies (SPCX) and Tesla (TSLA), and both companies have formed special committees to explore it, though no terms have been agreed and shareholder approval would be required. The rationale is that Tesla is expanding into AI, robotics and energy while SpaceX moves into AI computing infrastructure, with possible benefits including shared chip development for the Terafab project, robotics, energy storage supporting computing facilities, and satellite connectivity. The article stresses these are potential synergies rather than guaranteed profits, and the deal must create more value than partnerships would. Risks include agreeing a fair share split, governance concerns because Musk has interests in both firms and will not join committee discussions, and more complex capital allocation. Investors are watching whether the merger creates benefits the companies cannot achieve separately and whether the terms are fair to both groups of shareholders.
- Cathie Wood Says Tesla, SpaceX Could Drive Up To 9% GDP Growth: ARK Sees Merger As Win For Both Shareholder Bases
Cathie Wood says Tesla and SpaceX are leading the economy toward 7% to 9% real GDP growth, while ARK Investment Management sees a merger of the two companies as delivering substantial gains for both shareholder bases. ARK's share-swap model, with no premium paid, projects a 3.8-fold boost to Tesla investors' returns and a 7.2-fold boost to SpaceX investors' incremental returns, with Tesla shareholders holding about 42% of the combined company's projected 2031 market value. ARK argues Tesla's robotaxi and Cybercab cash flow could fund SpaceX's capital-intensive expansion, though it estimates installing 10 gigawatts of Nvidia Vera Rubin systems could cost more than $400 billion before other data-center costs. Musk, however, said assuming a merger is certain would be overstating it, and independent board committees are reviewing a possible deal without having agreed on terms.
- Kevin O'Leary Says Tesla-SpaceX Merger Is Inevitable After Flying Roadster Demo — 'If You Own Tesla, You're Gonna Own New Company'
Kevin O'Leary said in a video posted on X on Oct. 17 that Tesla will merge with SpaceX and that Tesla shareholders would end up owning the new company. His comments followed Tesla's Oct. 15 demonstration of its second-generation Roadster at SpaceX's Texas facility, where an uncrewed prototype drove up a ramp upside down, performed midair flips and landed using SpaceX-derived cold-gas thrusters. Tesla claimed a 0-to-60 mph time of 0.81 second, with production targeted for 2028. The article points to existing ties between the companies, including the proposed Terafab semiconductor project, SpaceX's purchases of Tesla Megapacks, Tesla's holding of SpaceX shares, and Grok's integration into Tesla vehicles after SpaceX's combination with xAI. Dan Ives puts the odds of a merger by the end of 2027 at 80%, while Barclays analysts say an announcement could come before Tesla's next annual shareholder meeting. Any deal would need shareholder approval and would raise questions about valuation, shareholder compensation and which company would acquire the other.
- Tesla Stock Surges After Barclays Upgrade on Hopes of a SpaceX Merger
- Tesla stock jumps as Barclays bets a SpaceX takeout bump is coming
Barclays upgraded Tesla to Overweight from Equal Weight and raised its price target to $450 from $370, and the stock rose 6% on Monday. The bank believes a possible Tesla merger with SpaceX could bring a takeout premium, after Elon Musk said both companies had formed special committees to discuss a deal. Barclays sees an all-stock acquisition by SpaceX as the most likely structure, with about 3.1 SpaceX shares per Tesla share at a 20% premium, leaving Musk with about 53% of the combined company's voting power; approval requires more than 50% of total outstanding shares. Barclays forecasts 1.80 million Tesla vehicles in 2026 and 1.92 million in 2027, and Tesla's robotaxi fleet had logged about 3.1 million unsupervised miles across 6 cities as of October 18. Barclays does not expect robotaxis to matter financially in the near- to mid-term.
Related markets
Latest news
- UPS beats quarterly expectations, raises full-year guidance again
UPS reported third-quarter adjusted earnings of $1.69 per share, above the $1.63 expected, and revenue of $22.9 billion versus $22.29 billion expected. Net income was $1.16 billion, or $1.37 per share, down from $1.31 billion, or $1.55, a year earlier. The company raised its full-year consolidated revenue projection to about $92.6 billion from $91.2 billion and forecasts fourth-quarter revenue of $25.7 billion. Domestic revenue rose 4.5%, international revenue 7.1%, and supply chain solutions 18.2%, driven mainly by forwarding and logistics, including healthcare. CEO Carol Tomé said UPS is entering the holiday shipping season 'from a position of strength' with the most automated and efficient network in its history.
- Ripple Wins Final OCC Approval for Trust Bank Behind $2.6B RLUSD Stablecoin
The OCC has granted Ripple final approval to open Ripple National Trust Bank, 10 months after conditionally approving the charter in December 2025. The bank will manage the reserves backing the RLUSD stablecoin, act as collateral trustee for holders, and offer fiduciary digital asset custody to enterprises. RLUSD will still be issued by Standard Custody & Trust Company, which is regulated by the New York DFS, so the stablecoin will fall under both state and federal supervision. The approval comes as community banks challenge the OCC's crypto charters in court, and Sen. Elizabeth Warren has called the charters illegal. According to CoinGecko, RLUSD has a market capitalization of about $2.6 billion.
- China’s AI Stock Rout Scary, but Crypto Punters Aren’t Calling a US Bubble Burst Yet
Crypto bettors see little near-term risk of an AI crash in the U.S., even as warning signs emerge from China. On Polymarket, the Polygon (POL)-based prediction market, the chance of an AI-industry bubble burst is priced at only 9%.
- JPMorgan Chase Says That Bitcoin Will Outperform Stocks, Bonds, and Gold Over the Next 10 Years. Here's Why It Might Be Right
A new report from the asset management arm of JPMorgan Chase projects that Bitcoin could return 10% annually over the next 10 years in its base case, versus 7.5% for U.S. large-cap stocks, 5.6% for broad U.S. bonds and 5.5% for gold. The projection rests on three drivers: Bitcoin's slowing supply growth relative to global money growth (65% weight), its inclusion in portfolios alongside scarce store-of-value assets such as gold (30%), and rising network activity. Under this model, the coin would be priced at about $211,130 by 2036, compared with $81,300 as of Oct. 26; the bear case calls for an 11.2% annual loss and the bull case a 16.6% annual gain. The bank expects volatility of 55% in all scenarios and describes Bitcoin as 'a speculative asset and a hedge against monetary easing.' The article says these forecasts are conservative relative to Bitcoin's 63% 10-year compound annual growth rate but appear reasonable.
- Microsoft announces voluntary buyouts for 60,000 employees worldwide
Microsoft has announced a voluntary buyout programme for about 60,000 employees, more than a quarter of its global workforce, to manage expenses and support ongoing AI investments, according to Reuters. The offer applies to eligible staff in Canada, India, the UK and the US at level 70 and below, across divisions including AI experiences, finance, Copilot, human resources, Xbox and Windows + Devices, while marketing, commercial business and security are excluded. It follows an earlier buyout offer to around 9,000 US employees (7% of the American workforce) and 4,800 job cuts in July, about 2.1% of global headcount. The company has a reported forecast of $175bn in capital expenditures for calendar 2026, and it employed 223,000 full-time staff as of 30 June 2026.
- Zcash co-founder calls to stop funding 'over $125M' grants program
Zcash co-founder Sean Bowe has proposed ending the automatic funding stream to Zcash Community Grants (ZCG), saying the program already holds over $125M and that its treasury is large enough to keep funding projects without further automatic payments. A draft GitHub proposal would redirect ZCG's 8% share of the ZEC block subsidy to the network's sustainability reserve until the current funding period ends in 2028, leaving existing funds untouched. According to ZCG's dashboard, it held 91,453 ZEC and $8.8 million in cash, with $2.4 million in outstanding grant commitments, and the ZEC holdings alone were worth about $111 million at press time. Earlier, in September, Haseeb Qureshi of Dragonfly proposed ending the Zcash developer fund when its current funding period expires, warning that it risks being 'politicized' as it approaches $100 million in value.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.