Musk said SpaceX and Tesla have formed special committees to study a merger, which would be worth about $3.5 trillion combined and would be the largest corporate deal in history. SpaceX, valued at about $2 trillion after a record listing this year, absorbed Musk's AI startup xAI in February, while Tesla is valued at about $1.5 trillion. Musk holds about 82 percent of SpaceX's voting power but only about 20 percent at Tesla. Dan Ives puts the odds of a deal at 90 percent by early 2027, though Musk called the requirement of a majority of all Tesla shares 'quite a high hurdle'. Loyal retail investors hold an estimated 25 to 27 percent of Tesla shares, and legal obstacles appear slight because both companies moved their incorporation to Texas from Delaware.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
TSLAElon MuskSpaceXmergers and acquisitions
Open a keyword to see other news on the same topic.
Related tickers and likely impact
TSLA
• NeutralTesla, Inc.
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.4T |
| Close on 10/22/2026 | 374.67 |
| Change that session | -3.05% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- 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.
- A SpaceX-Tesla Merger Feels Inevitable. Is It Actually a Good Deal?
- Why Elon Musk wants to merge Tesla and SpaceX before Trump leaves office
Elon Musk has opened the door to merging Tesla and SpaceX into a $3.5 trillion company, reportedly aiming to close the deal before Donald Trump's term ends in January 2029. Both companies have set up committees of independent board members to study it; Musk called it a good idea but warned the deal is not certain and would need backing from more than half of Tesla's shares. The move would extend a string of Musk deals, from Tesla's 2016 purchase of SolarCity to xAI absorbing X in 2025 and SpaceX absorbing xAI earlier this year at a $1 trillion valuation for SpaceX. SpaceX reported $4.4 billion in quarterly profit, its first since listing, as revenue rose 161%, while Tesla's net profit fell 43% to $787 million. Musk owns about 48% of SpaceX and over 80% of its votes but only about 20% of Tesla, so the article argues a merger could help him gain control, as he has said he wants at least 25% of the votes.
Related markets
Latest news
- CoreWeave and Nebius Stocks Are Crashing. Time to Buy the Dip?
Shares of Nebius and CoreWeave each fell 25% in the week of October 12 to 16. The sell-off stems from the yield on CoreWeave's debt in the secondary market surging to 15%, versus roughly 5% on Treasuries, which pushes the debt into 'distressed' territory and signals doubts about its ability to meet obligations. Nebius sold off in sympathy as a fellow neocloud company. The bigger concern is that both companies must keep issuing debt to fund data centers, and if yields are high at issuance, the assumption of nearly unlimited cheap capital could be challenged. The author says it is unclear whether now is the time to buy.
- 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.
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.