The boards of Tesla and SpaceX have each formed a special committee of independent directors to weigh a combination, Elon Musk said on SpaceX’s third-quarter earnings call on Oct. 20, though neither committee has agreed to terms. SpaceX’s third-quarter revenue rose 161% to $14.6 billion and its operating income swung to $2.8 billion, while Tesla’s revenue was flat at $28.0 billion and its operating income fell 56% to $718 million. SpaceX spent $48.1 billion on property and equipment in the first nine months, mainly for AI, leaving free cash flow of about negative $35 billion, versus about $1.9 billion positive at Tesla. The author argues the deal’s appeal depends almost entirely on the price Tesla shareholders receive, and at today’s prices it looks less attractive than SpaceX’s growth suggests. He says he would not buy Tesla shares hoping for a deal, since the terms have yet to be set.
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TeslaSpaceXmergers and acquisitionsElon Musk
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Related tickers and likely impact
TSLA
• NeutralTesla, Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.5T |
| Close on 10/23/2026 | 372.22 |
| Change that session | -0.63% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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