> ## Content Index > Fetch the complete content index at: https://bullquill.com/llms.txt > Use this file to discover other available public pages before exploring further. # Tesla SpaceX merger: committees formed, no terms agreed yet - URL: https://bullquill.com/tesla-spacex-merger-what-musk-confirmed/ - Published: 2026-10-21T05:57:26.000Z - Updated: 2026-10-23T17:29:06.000Z - Description: Tesla declined merger questions on its own Q3 call on 21 October, leaving Musk's remarks on SpaceX's call as the only on-record account. Musk said treating a deal as certain "would be overstating it". - Author: Rowan Ashby - Tags: Business, Trending, #lang-en, #diperbarui, #upd 2026-10-22T03:18:30Z, #tr-tesla-spacex-merger-what-musk-confirmed ## Update, October 22, 2026 - **No new merger details from Tesla (call held after the 20:00 UTC close on 21 Oct).** At the start of Tesla's third-quarter call, head of investor relations Travis Axelrod said the company "will not be addressing any questions today on a potential merger with SpaceX," according to an Investing.com transcript. Musk added only that he had said everything that should be said on SpaceX's call the day before, describing it as "tap dancing through a minefield." AP (report published 20:55 UTC) also said Musk declined to discuss the merger further. - **The results contain no merger proposal.** Tesla's Q3 2026 Update, filed with the SEC on 21 October, does not mention a combination. It shows an unrealised loss of $142 million on Tesla's SpaceX shares in the quarter, after a $1,005 million gain in the second quarter. - **Profit fell and the shares slipped after hours.** Tesla reported GAAP net income of $787 million, or $0.22 a share, down 44% from a year earlier according to AP, on revenue of $28.05 billion. The stock closed the regular session at $386.47, up 3.41%, then fell between about 2.2% and 3.2% in after-hours trading, according to Investing.com and AP (reports from 20:50–20:55 UTC). ## Key takeaways - Tesla used its own third-quarter call on 21 October to decline merger questions and disclosed no proposal, so Musk's remarks on SpaceX's call remain the only on-record account of the talks. - On SpaceX's third-quarter earnings call on Tuesday, 20 October 2026, Elon Musk said special committees of independent directors at SpaceX and Tesla have been formed to explore a possible merger. - No terms have been agreed, no price has been set, and Musk himself warned that treating a deal as certain "would be overstating it", according to Al Jazeera and Fortune. - Any deal would need approval from Tesla shareholders; Musk described the required support from a majority of outstanding Tesla shares as "quite a high hurdle". - At Tuesday's closing prices the two companies were worth about $3.5 trillion combined, according to Fortune, which would make it the largest corporate combination on record. - The talks follow reports in late January 2026 that SpaceX was weighing a tie-up with Tesla or xAI. SpaceX went on to absorb xAI in February in a deal valued at $1.25 trillion. ## What Musk actually said Elon Musk said on SpaceX's third-quarter earnings call on Tuesday, 20 October 2026, that special committees of independent directors at SpaceX and Tesla have been formed to explore a possible Tesla SpaceX merger. No terms have been agreed and no price has been set. Musk stressed that he is not part of those discussions. "I'm a conflicted party, I can't actually be in the discussions," he said, as quoted by Fortune. He is chief executive of both companies and their largest shareholder, so his interests sit on both sides of any potential deal. Investing.com, in a report republished by Yahoo Finance, quoted him describing the process as "this sort of odd kabuki dance" between two groups of directors. He also made the case for the idea, saying a merger had a "lot of merit" because of the companies' overlapping work in artificial intelligence, according to Al Jazeera. Reports of the call say he pointed to AI software, chip design, robotics and connectivity, as well as Terafab, a chip-making plant the two companies are developing together. At the same time, he tried to cool expectations. "Some people out there assume that a SpaceX and Tesla merger is a certainty, and I think that would be overstating it," he said, as reported by Al Jazeera. Referring to the committees, he added: "They've got to come up with something, and then that's got to be put to the shareholders as a vote." ## Confirmed versus unknown Based on what Musk said on the call and what the companies have filed, the facts fall into two groups. | Confirmed (as of 22 October 2026) | Still unknown | | ------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------- | | Special committees of independent directors exist at both companies (Musk, SpaceX Q3 call) | Which directors sit on each committee, and which advisers they have hired | | No agreement on terms has been reached (Musk, per Al Jazeera and Fortune) | Structure: which company would acquire the other, and whether it would be all-stock | | Tesla shareholders would have to vote on any deal (Musk) | Exchange ratio or price, and whether SpaceX shareholders would also vote | | Tesla's annual proxy, filed on 19 October, contains no merger proposal (Fortune); neither does its Q3 2026 Update filed on 21 October (SEC EDGAR) | Timing: no date has been given for a decision | | Tesla already holds an equity stake in SpaceX (Tesla Form 10-Q) | What regulatory reviews would apply, and how long they would take | Neither company has published a formal written statement on the talks. Tesla reported its own third-quarter results after the US market close on Wednesday, 21 October, but its investor relations team said at the start of the call that merger questions would not be addressed, according to the Investing.com transcript. Everything on the record therefore still comes from Musk's remarks on SpaceX's call. ## The numbers behind the talks The size of the companies explains why the remarks moved markets. The table below sets out the main figures reported so far. | Item | Figure | Source | | --------------------------------------------------------------- | ---------------------------------------------------------------- | -------------------------------- | | SpaceX market value, close of 20 Oct 2026 | about $2 trillion | Fortune | | Tesla market value, close of 20 Oct 2026 | nearly $1.5 trillion | Fortune | | Combined market value | about $3.5 trillion | Fortune; Al Jazeera | | SpaceX Q3 2026 revenue | $14.6 billion, up 161% year on year | Investing.com, on SpaceX results | | SpaceX Q3 2026 net income | $4.4 billion (vs. a $1.05 billion loss a year earlier) | Al Jazeera, on SpaceX results | | Musk's stake in Tesla | about 20% | Fortune | | Musk's stake in SpaceX | about 45% of equity, about 82% of voting power | Fortune | | Tesla's cash outlay for SpaceX equity, H1 2026 | $2.0 billion; carried at $3.0 billion on 30 June 2026 | Tesla Form 10-Q, Q2 2026 | | Change in value of Tesla's SpaceX stake, Q3 2026 | $142 million unrealised loss (after a $1,005 million gain in Q2) | Tesla Q3 2026 Update (SEC 8-K) | | Tesla Q3 2026 revenue | $28.05 billion, broadly flat year on year | Tesla Q3 2026 Update; AP | | Tesla Q3 2026 GAAP net income | $787 million, or $0.22 per share, down 44% year on year | Tesla Q3 2026 Update; AP | | Tesla cash, equivalents and short-term investments, 30 Sep 2026 | $45.4 billion | Tesla Q3 2026 Update | | Tesla share price, close of 21 Oct 2026 | $386.47, up 3.41%; down about 2.2%–3.2% after hours | Investing.com; AP | Market values are based on closing prices on 20 October 2026 (data as of 2026-10-20T20:00Z, as reported by Fortune). Tesla's 21 October share prices are as of the 20:00 UTC close and after-hours reports published around 20:50–20:55 UTC; after-hours figures varied with the time of measurement. In after-hours trading after the comments, SpaceX shares rose between about 5% and more than 8% and Tesla shares gained between about 1% and 1.8%, depending on when the move was measured, according to Fortune and Al Jazeera. Fortune reported that Musk would own roughly one third of a combined company. Al Jazeera described the potential deal as the largest corporate tie-up in history, well ahead of the SpaceX–xAI combination earlier this year. ## How we got here Talk of a combination is not new. On 29–30 January 2026, Bloomberg News reported, citing people familiar with the matter, that SpaceX had discussed whether a merger with Tesla was feasible and that some investors favoured that option. It also reported that SpaceX was separately exploring a combination with xAI, Musk's AI company, ahead of a planned listing. Reuters reported the xAI discussions around the same time. The xAI option came first. In early February, SpaceX absorbed xAI in a deal that valued the combined group at $1.25 trillion. SpaceX then listed in June in what Al Jazeera described as the largest initial public offering ever. Tesla's quarterly filings show it bought SpaceX shares for about $2.0 billion during the first half of 2026 and elected to account for the stake at fair value. The holding is subject to post-IPO sales restrictions that expire in December 2026. ## The hurdles ### Valuation Because both companies are now listed, there are market prices to start from, but the committees still have to agree an exchange ratio. Both share prices have been volatile, and each side's advisers will argue over how much each business is worth. Investing.com reported that Barclays analyst Dan Levy suggested SpaceX could be the acquirer in an all-stock deal. That remains analyst speculation, not a disclosed plan. ### Shareholder approval Musk said Tesla would need the support of a majority of its outstanding shares, not just a majority of votes cast, and called that "quite a high hurdle." Shares that are never voted effectively count against approval. Musk's own roughly 20% stake gives him a head start, but the outcome would depend on large institutional holders and Tesla's unusually large base of retail investors. Founder control is a live issue at other large technology companies too. Meta, for example, has struck a deal that gives Mark Zuckerberg non-voting Class C shares; our report explains [Meta's agreement to keep Zuckerberg in California](https://bullquill.com/meta-zuckerberg-california-residency-deal/) amid a possible wealth tax. ### Board independence Because Musk sits on both sides, the credibility of the process depends on the committees acting independently. Fortune noted overlapping relationships: one director chairs committees at both SpaceX and Tesla, and another Tesla director previously invested in SpaceX. Critics are likely to look closely at how committee members were chosen and advised. Commentators, including Electrek in January, have already questioned whether a deal would treat Tesla shareholders fairly. ### Regulatory review Musk did not discuss regulators on the call, and none of the coverage reviewed identified a specific filing or review timetable. A combination of two US-listed companies would normally require detailed disclosure documents filed with the Securities and Exchange Commission before any vote. Whether competition or national-security reviews would apply is not yet known. This matters because SpaceX is a major US government launch contractor. ## What it means For now, this is a process, not a deal. Musk has confirmed that formal machinery exists and that he finds the idea attractive. He has also said publicly that a merger is far from assured and that he is excluded from the negotiations. Tesla's third-quarter call on 21 October added nothing new: the company declined merger questions, and its results filing contains no proposal. Our report on [Tesla's Q3 2026 results and its cut to capital spending](https://bullquill.com/tesla-q3-2026-results-capex-cut/) covers the numbers from that quarter. Musk's other business moves are also drawing scrutiny, including his [reported $1 billion investment in Skydance](https://bullquill.com/musk-skydance-investment-paramount-warner-financing/), which the companies have not confirmed. The next signals to watch are formal statements or filings from either company's special committee and the agenda of Tesla's annual meeting. For SpaceX's side of the story, see our report on [SpaceX's third-quarter results](https://bullquill.com/spacex-q3-ai-revenue-overtakes-starlink/). Until terms are disclosed, any estimate of what Tesla or SpaceX shareholders would receive is guesswork. ## Related coverage - [US stocks brief: Dow up 1%, tech stalls before Tesla and Meta](https://bullquill.com/us-stocks-daily-brief-2026-10-21/) - [Meta Non-Voting Stock: What the Class C Dividend Means for AI](https://bullquill.com/meta-non-voting-share-class-ai-spending/) ## Frequently asked questions ### Have SpaceX and Tesla agreed to merge? No. Elon Musk said on SpaceX's third-quarter call on 20 October 2026 that special committees of independent directors at both companies are exploring a merger, but no terms have been agreed and he said assuming a deal is certain would be overstating it. On Tesla's own results call on 21 October, the company declined to take merger questions. ### Why is Musk not part of the merger talks? Musk runs both companies and is the largest shareholder in each, so he is a conflicted party. He said the discussions are being handled by committees of independent directors. ### What approval would a merger need? Musk said a deal would have to be put to a shareholder vote and that Tesla would need support from a majority of its outstanding shares, which he called a high hurdle. Regulatory filings would also be required, but no timetable has been disclosed. ### How big would a combined SpaceX and Tesla be? Based on closing prices on 20 October 2026, Fortune put the combined market value at about $3.5 trillion, with SpaceX at about $2 trillion and Tesla at nearly $1.5 trillion. ## Sources - [Tesla, Inc. Q3 2026 Update, Exhibit 99.1 to Form 8-K (SEC EDGAR, 21 Oct 2026)](https://www.sec.gov/Archives/edgar/data/0001318605/000162828026066738/exhibit9914.htm?ref=bullquill.com) - [AP via Yahoo Finance: Tesla's Q3 profit drops as it prepares for possible merger with SpaceX (21 Oct 2026)](https://finance.yahoo.com/markets/stocks/articles/teslas-q3-profit-drops-prepares-205517944.html?ref=bullquill.com) - [Investing.com: Earnings call transcript, Tesla Q3 2026 (21 Oct 2026)](https://www.investing.com/news/transcripts/earnings-call-transcript-tesla-beats-q3-2026-estimates-as-stock-slips-after-hours-93CH-4964365?ref=bullquill.com) - [Investing.com via Yahoo Finance: Tesla shares reverse course as robotics, chipmaking caution overshadows upbeat Q3 (21 Oct 2026)](https://finance.yahoo.com/markets/stocks/articles/tesla-stock-automotive-gross-margin-205013255.html?ref=bullquill.com) - [Al Jazeera: Elon Musk says SpaceX and Tesla exploring largest merger in history (21 Oct 2026)](https://www.aljazeera.com/economy/2026/10/21/elon-musk-says-spacex-and-tesla-exploring-largest-merger-in?ref=bullquill.com) - [Fortune: Elon Musk says Tesla and SpaceX are weighing a $3.5 trillion merger (20 Oct 2026)](https://fortune.com/2026/10/20/elon-musk-tesla-and-spacex-weighing-merger/?ref=bullquill.com) - [Investing.com via Yahoo Finance: SpaceX and Tesla form special committees to evaluate potential merger (20 Oct 2026)](https://ca.finance.yahoo.com/news/spacex-tesla-form-special-committees-222811801.html?ref=bullquill.com) - [Bloomberg News via Bloomberg Law: Elon Musk's SpaceX is said to consider merger with Tesla or xAI (Jan 2026)](https://news.bloomberglaw.com/ip-law/elon-musks-spacex-is-said-to-consider-merger-with-tesla-or-xai?ref=bullquill.com) - [Electrek: Musk rumored to be floating merger between Tesla, xAI and SpaceX (29 Jan 2026)](https://electrek.co/2026/01/29/elon-musk-rumored-floating-merger-between-tesla-xai-spacex/?ref=bullquill.com) - [Tesla, Inc. Form 10-Q for the quarter ended 30 June 2026 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/0001318605/000162828026049270/tsla-20260630.htm?ref=bullquill.com) - [South China Morning Post: Musk merges xAI into SpaceX in record-setting deal (Feb 2026)](https://www.scmp.com/news/world/united-states-canada/article/3342161/musk-merges-xai-spacex-bid-build-space-data-centres?ref=bullquill.com) - [Tesla Investor Relations](https://ir.tesla.com/?ref=bullquill.com)