Elon Musk said on Tuesday that the boards of SpaceX and Tesla have each formed special committees of independent directors to study a merger, though no terms have been agreed. A combined company valued at roughly $3.5 trillion would own the Grok chatbot, X, Starlink, the Terafab chip project, the Starmind orbital data center plan, and Tesla’s robotaxi and Optimus robot businesses. Any deal needs the support of 50% of all outstanding Tesla shares, which Musk called “quite a high hurdle,” and Tesla’s annual meeting is set for December 3. SpaceX reported third-quarter revenue of $14.58 billion, above the $12.72 billion analysts expected, and its first quarterly profit since going public, largely from renting computing power to firms such as Anthropic and Google. Musk stressed that a merger is not certain, and SpaceX’s IPO paperwork warned that orbital AI computing relies on “unproven technologies.”
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Decrypt ↗
Keywords
TSLASpaceXmergers and acquisitionsElon Muskartificial intelligence
Open a keyword to see other news on the same topic.
Related tickers and likely impact
TSLA
• NeutralTesla, Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.4T |
| Close on 10/20/2026 | 373.71 |
| Change that session | +1.54% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- A SpaceX-Tesla megamerger could benefit both companies and Elon Musk's personal fortune
SpaceX shares rose 8% and Tesla 3.5% after Elon Musk said each company had formed special committees to discuss a possible combination. At current market values, the merged company would be worth about $3.5 trillion, the largest deal ever, and Musk argues it makes sense because both businesses rely heavily on artificial intelligence. Musk owns 11% of SpaceX and 19% of Tesla, and a change-in-control provision in Tesla's pay plan could treat many performance targets as met in a merger, which would make him richer. Although the shares are very expensive by most measures, most analysts still call them a bargain, and many work for banks hoping to win Musk's business. Democrats have called for investigations into SpaceX's federal contracts and could scuttle plans if they win big in next month's midterm elections.
- Elon Musk backs SpaceX-Tesla merger as rocket firm turns profit
Elon Musk said he would back a possible merger of SpaceX and Tesla, calling it “a good idea,” while stressing that special committees at both companies have not agreed on terms and that a deal is not guaranteed. SpaceX reported net income of $4.4 billion for July–September, compared with a $1.1 billion loss a year earlier, as revenue rose 161% to $14.6 billion. The growth was driven by its AI unit, now called “Super Intelligence,” whose revenue rose more than ninefold to $7.6 billion on cloud computing deals with Anthropic and Google. Capital spending remains heavy, with $19.6 billion invested in the quarter and computing capacity reaching 1.7 gigawatts. Starlink revenue grew 69% to $5.2 billion, though average monthly revenue per consumer fell to $69 from $83.
- CLSA Says SpaceX Merger Buzz Overshadows Tesla's Concerns, But Musk's Public Endorsement Could Reportedly Complicate Deal Talks
According to Reuters, investors are increasingly optimistic about a possible merger of Tesla (TSLA) and SpaceX (SPCX), but Elon Musk's recent public endorsement reportedly worries some insiders, as it could draw shareholder scrutiny and delay the process by several weeks. CLSA upgraded Tesla to 'Hold' from 'Underperform' and raised its price target to $400 from $310, arguing that merger prospects outweigh its longer-term concerns. Musk confirmed both companies have formed special committees of independent directors to explore the idea, but said a deal is far from certain and that he cannot take part directly in negotiations. At the time of writing, SPCX shares were down 8% and TSLA shares were down 1.3%; the article also flags risks such as valuation, regulatory scrutiny and Tesla's operations in China.
- Could a Tesla-SpaceX merger really be the next big move for Elon Musk?
Two speakers discuss a possible Tesla-SpaceX merger and the outlook for Tesla stock. Speaker A argues that SpaceX, which he calls a vertically integrated AI company, would make a powerful combination, and says he will keep focusing on Tesla's Megapack business, which is sold out in utility-grade battery storage, as well as Optimus. He says he bought in at about $100 a share three years ago and sees volatility as a friend given his long-term perspective. Speaker B views Tesla's recent results as mixed to negative, with profit down over 40%, flat revenue, and better free cash flow mainly because capital spending was cut. He says Tesla is behind Waymo in autonomous driving (800 versus 8,000) and behind China in humanoid robots, and suggests a merger could be interesting and might benefit Tesla shareholders.
- Did Wall Street forget about Tesla's Cybercab?
Yahoo Finance's Brian Sozzi discusses Tesla (TSLA)'s Cybercab expansion and its relevance amid a possible merger with SpaceX (SPCX). Elon pointed to 2 million cumulative unsupervised robotaxi miles by quarter-end, Austin operating hours now run 6:00 a.m. to midnight, and more Cybercabs are expected in more cities in coming months. The Austin Cybercab fleet has grown by a factor of 10 since launch about a month ago. Tesla shares fell partly because the company cut capex by $5 billion, which Sozzi attributes to Optimus robot production bottlenecks rather than the Cybercab. He argues that with merger talks being explored, investors should start thinking of SpaceX and Tesla as one company.
- SpaceX Just Crushed Wall Street's Q3 Targets -- but a Potential Tesla Merger Is Even Bigger News
SpaceX reported third-quarter adjusted EPS of $0.45 on sales of $14.58 billion, far above analyst averages of $0.13 and $12.72 billion. Revenue rose 161% year over year and net income swung to $4.4 billion from a $1.1 billion loss a year earlier; Starlink sales grew 69% to $5.25 billion, while the superintelligence segment rose about 830% to $7.56 billion. The company guided first-quarter 2027 sales to $33–37 billion, and Musk said he expects annual recurring revenue of $500 billion–$1 trillion by the end of next year. On the call, Musk said special committees had been formed to explore a merger with Tesla, that he could not take part due to conflicts, and that merging was a good idea, though shareholder approval equal to 50% of total shares would be a significant hurdle.
Related markets
Latest news
- Disney’s multiplatform Super Bowl plan frustrates ABC affiliates
ABC station owners are irritated that Disney is airing the Super Bowl across several platforms, including Disney+, ESPN2, NFL Network and ESPNU, even though the game is already on ABC and ESPN. A station group CEO estimates that the combined platforms could cut broadcast ad revenue by up to 35% compared with last year. Local affiliates typically earn about 3% of annual ad revenue from the Super Bowl and pay network owners reverse retransmission fees, but Disney+ lacks geofenced ad insertion, so affiliates cannot sell ads to streaming viewers. Disney says national commercials will be identical on all platforms and that streaming major live events is standard industry practice. Super Bowl LX drew 125.6 million viewers in February.
- Nasdaq sell-off: A momentum unwind 'for the record books'
Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management, calls Thursday’s sell-off in the Nasdaq Composite (^IXIC) a momentum unwind “for the record books.” He says the market spent the first half of 2026 driven by a beta and momentum trade led by semiconductors, but in the third quarter, as rates rose, money shifted into quality stocks. He does not think the sell-off is justified by fundamentals, arguing that institutional portfolio managers swapping out of factor positions can drag down whole baskets of stocks. In semiconductors, spot rental rates for Nvidia Blackwell chips are higher than a month ago, showing tightening compute supply, even as financing costs rise and investors worry about neocloud business models and the rising cost of insuring their bonds.
- Meta’s deal to keep Zuckerberg in California adds fuel to wealth tax debate ahead of election
Meta says Mark Zuckerberg will remain in California for eight years and has created a new stock plan that could help cover his taxes if Proposition 40, a 5% tax on Californians worth over $1 billion, passes on Election Day on Nov. 3. According to a filing released with its third-quarter earnings, Meta will issue non-voting Class C shares starting in January, and Zuckerberg can sell or transfer up to 20% of the shares granted to him without affecting his majority voting control. The filing says Zuckerberg’s leadership is crucial to the company’s growth and its AI ambitions, including Meta Superintelligence Labs. Most of the tech industry opposes the measure, while a recent Citrin-Politico poll found 46% in favor and 43% against, suggesting it may fall short of the majority support it needs.
- Dune launches real-time data feeds covering 200 onchain trading venues
Blockchain analytics platform Dune has launched real-time market data feeds covering more than 200 onchain trading venues, aiming to bring this data into the systems of traditional financial institutions. The feeds draw trade data from 12 blockchains, including Ethereum, Solana and Base, about one second after execution, covering both spot trading on decentralized exchanges and perpetual futures on Hyperliquid and Lighter. Early clients include quant funds, market makers, asset managers and bank trading desks, which use the data to assess liquidity and compare prices, though Dune did not name them. Meanwhile, the tokenized stock market has grown sharply, with distributed value reaching $3.58 billion, but 16 companies, including Microsoft, Alphabet and Goldman Sachs, have objected to their shares being traded on OKXICE’s proposed platform, and liquidity remains fragmented.
- Apple’s foldable iPhone has a $2,000 app problem
Yahoo Finance Tech Editor Dan Howley has had hands-on time with Apple’s foldable iPhone Duo, which hits stores Friday. He finds the design strong, though one-handed use requires stretching your thumb, and people with small hands will likely need two hands. The matte screen hides the crease well, addressing a durability concern that earlier foldables faced, and Samsung and Google have also solved it. Howley calls the device mainly an early-adopter product, warning that apps may not look perfect at launch. He also notes it has ultra-wide and wide cameras but no zoom lens, so buyers who want zoom should consider the Pro models.
- Alphabet (GOOGL) vs. MSFT and AMZN: Can AI Investments and Google Cloud Growth Unlock a 26% Upside?
The article summarizes a bullish case on Alphabet (GOOGL) from Astute Optics - US's Substack. Shares traded at $334.76 as of October 21st 2026, with trailing and forward P/E of 17.62 and 22.83, and gained 35.20% over 12 months versus 20.50% for Amazon. Bulls point to Google Cloud revenue jumping 82% to $24.8 billion and quarterly revenue rising 24% to $119.8 billion, backed by a net cash position of $144.3 billion, while capital spending plans were raised to $195 billion to $205 billion. The average analyst price target of $422 implies roughly 26% upside, but the article warns of risks including AI spending not converting into earnings, regulatory scrutiny, AI search competition and advertising budget cuts, given over 70% of 2025 revenue came from online advertising.
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.