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.
Summary written by Upside AI from the original article. Read the source for full details.
Keywords
TSLASpaceXElon Muskmergers and acquisitions
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 | $1.4T |
| 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
- SpaceX and Tesla Merger Soon? Crypto Prediction Market Punters Are Betting on This Date as Elon Musk Calls the Combination a 'Good Idea'
Polymarket currently gives a 70% chance that SpaceX and Tesla will officially combine by Dec. 31, 2027, up 5 percentage points in a day and 10 in a week, while the odds of a merger by June 30, 2027 rose from 45% to 55% over the past week, with over $1.4 million wagered. The spike follows Elon Musk saying the two companies have formed 'special committees' to discuss the idea at shareholders' request, calling it a 'good idea' while warning that a merger is not a sure thing. A Benzinga poll found about 70% of its audience believes a merger will happen by Dec. 3 or later. Musk's remarks came alongside SpaceX's strong third-quarter results, which beat analyst estimates on both revenue and earnings, and Tesla is scheduled to report its third-quarter results after the market close on Wednesday.
- SpaceX CEO Elon Musk's Approval Required in Potential Merger With Tesla
- 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.
Related markets
Latest news
- Higher interest rates have made family offices pickier about investing in real estate
Family offices say higher interest rates have made them more selective about real estate, focusing on heavily discounted properties and assets with strong pricing power. Rob Haugen of Michels Family Office says the firm will only pursue especially attractive projects until it has strong conviction that rates are heading down, targeting yields on cost in the high single digits or double digits. Joel Houck of HB Wealth has seen more interest from large family offices in industrial warehouses, farmland and timberland, which can offer inflation protection and tax efficiency, and generally steers clients away from funds with leverage above 65%. Cresset views data centers as more of a technology investment than real estate because of the risk that a 15-year lease becomes less valuable as technology changes, while Haugen is wary of 10- to 15-year lock-ups at high interest rates.
- Salesforce Is Betting Big on AI. The Payoff Could Be Bigger Than Investors Expect
24/7 Wall St. sets a $346.52 price target for Salesforce (CRM) over the next 12 months, versus shares at $242.92 (about 42.6% upside), and carries a buy rating at 90% confidence. The article argues that Agentforce ARR above $1.5 billion, up over 240%, and a buyback that reduces the share count are not fully reflected in the stock price. In fiscal Q2 2027, revenue rose 10.8% to $11.345 billion and non-GAAP EPS of $5.90 beat estimates, though about $2.53 per share came from strategic investment gains, and operating income was flat at $2.331 billion. Risks include acquisition costs such as the Braze deal, rising restructuring charges, free cash flow growth of only about 4-5%, and a 37.42% drop in shareholders' equity after the debt-funded buyback. The article puts its bull case at $387.36 and its bear case at $282.
- Here Are Friday’s Top Wall Street Analyst Research Calls: Deckers Outdoor, Globe Life, Guardant Health, Hess Midstream LP, Kimberly-Clark, Natera, NVR, SpaceX, Thermo Fisher Scientific, and More
The market fell sharply on Thursday as the Nasdaq Composite dropped 2.6% to 26,008 and the S&P 500 fell 1.21% to 7,553, after Meta reported negative free cash flow for the quarter despite an earnings beat. U.S. 30-year Treasury yields fell 15 basis points to 5.28% in a safe-haven rush, while Brent crude closed at $113 amid tensions related to the war with Iran. Bitcoin fell over 3%, and crypto liquidations topped $431 million. Among upgrades, Hess Midstream (HESM) moved to Outperform from Market Perform at Raymond James with a $32 target, SpaceX (SPCX) was upgraded to Buy from Sell at Phillip Securities with its target raised to $250 from $75, and Skydance (SKYD) was upgraded to Neutral from Underweight at JPMorgan, which lowered its target to $9 from $14. Deckers Outdoor (DECK) was downgraded to Underweight from Neutral at Piper Sandler.
- The IMF Just Raised Its Economic Growth Forecast. Buried in the Report Is a Warning for Stock Investors.
The IMF's October 2026 World Economic Outlook forecasts global growth of 3.1% in 2026 and 3.7% in 2027. The author considers this fairly optimistic given high energy costs, the war in Iran and slowing growth in several advanced economies, especially Europe, while AI infrastructure investment is currently the dominant positive factor. About 95% of global growth comes from just 32 economies, down from 54 in April. If AI productivity gains fall short and AI investment slows, global GDP growth could be cut by 1.1% by 2028, with deeper losses in the US and Asia. The author adds that international diversification may offer limited protection, since nearly 40% of the Vanguard Total International Stock ETF (VXUS) is allocated to South Korea, Taiwan, China and Japan; the author suggests long-term investors avoid radical portfolio changes but be more cautious about adding tech, growth and semiconductor stocks.
- Ethereum Delays Glamsterdam Testnet Fork Over Gas Security Flaws
Ethereum developers postponed the planned Glamsterdam activation on the Hoodi test network after security firm ChainSecurity found that gas changes in the upgrade could let some smart contracts permanently record failed operations that were designed to be retryable. ChainSecurity said it has already found 13 real-world examples and is working with affected projects through responsible disclosure, while the Ethereum Foundation assesses how many contracts are exposed. The Hoodi upgrade had been due to go live on Monday, and no new date has been set. Glamsterdam has already activated on the Sepolia test network on October 6, producing blocks with a gas limit of nearly 200 million, more than three times mainnet's 60 million.
- Was crypto self-custody ever designed for beginners?
Recent security incidents involving Ledger and Coldcard hardware wallets have revived debate over whether self-custody suits beginners. Safe Labs CEO Rahul Rumalla argues self-custody was always meant for everyone, while Onramp CEO Michael Tanguma says it was never designed with newcomers in mind. Multisig wallets improve security but add complexity in signer coordination and recovery, and several signers can still approve a malicious transaction if all are deceived by the same compromised interface. Tangem's seedless design removes the recovery phrase, but losing every device permanently locks users out of their funds, and Foundation CEO Zach Herbert criticized the lack of a built-in screen for verifying transactions.
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.