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TSLAmergers and acquisitionsSpaceXElon Musk
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Related tickers and likely impact
TSLA
• NeutralTesla, Inc.
Relevance: medium
| 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
- With earnings in rearview mirror, SpaceX-Tesla merger chatter takes center stage
Elon Musk told Tesla shareholders he had 'said everything that should be said' about a possible merger with SpaceX, a day after endorsing the idea on SpaceX's third-quarter earnings call and disclosing that both companies have formed special committees to explore a transaction. The merger talk overshadowed Tesla's earnings, which showed declining auto revenue and an even steeper drop in its energy business. Tesla shares fell 3% on Thursday and are down 17% for the year, while SpaceX dropped 9%, erasing Wednesday's gains. William Blair analysts said the push is about control, noting Musk holds almost 80% of voting power at SpaceX but 19.8% of Tesla's shares. With SpaceX valued at close to $2 trillion versus about $1.5 trillion for Tesla, SpaceX would likely be the acquirer in a stock swap, and experts say regulatory hurdles, especially from China, could be steep.
- Risks if Elon Musk's $3,500 billion SpaceX–Tesla merger becomes reality
The $3,500 billion merger of SpaceX and Tesla could face major political hurdles in the US and China. Elon Musk called the idea “a good idea” and confirmed that committees at both companies are considering a possible deal. SpaceX is a key US defense and aerospace contractor, while Tesla has large-scale production in China, so both Washington and Beijing may reassess the strategic risks. Senator Cory Booker warned the deal could draw close scrutiny from regulators, and if Democrats win control of the House in the November 3 midterm elections, it could become a congressional investigation target. Experts said the deal could come with commitments to limit ties between the two companies, but one major risk is that it could be reversed in 2029.
- Why a Merger With Tesla Could Be a Disaster for SpaceX
The article argues that a merger between Elon Musk's SpaceX and Tesla could be unfavorable for SpaceX investors. Both boards have formed special committees to review the deal, and Musk has recused himself while calling a combination “a good idea.” In the third quarter, SpaceX revenue more than doubled on growth in its AI infrastructure business, while Tesla revenue was flat at $28 billion, automotive revenue fell 3% to $20.5 billion, and vehicle deliveries dropped 2% to 486,532. The author says Tesla's valuation rests almost entirely on future products such as Optimus and self-driving, so SpaceX investors could overpay in a merger, and concludes they should oppose it until Tesla's valuation falls or its autonomy businesses show a clear financial impact.
- TSLA, SPCX Boards Confirm Special Committees On Potential Combination As Megapack Deals And Terafab Plans Deepen Ties
Tesla and SpaceX, both led by Elon Musk, have each formed special committees of independent directors to explore deepening their relationship, which could include a business combination, though no terms have been agreed and no deal is assured. Musk, who said he is a conflicted party, is not taking part in the committees’ discussions. In the quarter ended September 30, Tesla recorded $221 million of revenue from selling Megapacks to SpaceX and was owed $729 million in receivables from SpaceX. The companies are also jointly planning Terafab, a semiconductor plant in Grimes County, Texas, with an initial investment of about $16.8 billion, to make chips for AI, robotics and space-based computing. Tesla holds an equity stake of less than 1% in SpaceX, with a fair value of $2.9 billion as of September 30.
- Musk's wants to merge SpaceX and Tesla: Here's what to know
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.
- 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.
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