SpaceX and Tesla form special committees to explore a possible merger
Oct 22, 2026
SpaceX (NASDAQ: SPCX) and Tesla (NASDAQ: TSLA) have each formed a special committee to explore a possible merger, Elon Musk said on SpaceX's third-quarter earnings call on Tuesday, October 20, 2026. Musk is chief executive of both companies.
What Musk said
According to NBC News and CNBC, Musk said on the call that:
- the boards of SpaceX and Tesla have separately formed special committees to discuss the idea of a merger
- the committees are made up of independent directors, and he is not a member of either committee because he has a conflict of interest
- the committees have not reached agreement on the terms of any transaction, and there is no guarantee that they will
- any merger would need the support of shareholders of both companies
Musk said he sees "a lot of merit" in combining the companies, and mentioned possible cooperation in AI software, chip design and robotics. He also said it would be overstating it to assume a merger is certain.
How the shares moved
On Wednesday, October 21, SpaceX shares closed 7.8% higher at $159.31, and Tesla shares closed 3.4% higher at $386.47, according to TheStreet and Yahoo Finance. Tesla reported its own third-quarter results after the market close on the same day.
Why special committees are used
When a company considers a transaction with another company that shares the same executive or major shareholder, there is a potential conflict of interest. To protect other shareholders, boards often set up special committees of independent directors who are not connected to the conflicted party. These committees can hire their own financial and legal advisers, negotiate terms and decide whether to recommend a deal.
Existing links between the companies
SpaceX and Tesla already have several connections. Musk leads both companies, and both are working on AI and chips. According to NBC News, Tesla announced in January an investment of about $2 billion in shares of an AI company that has since become a SpaceX subsidiary, after SpaceX acquired xAI in February 2026.
What a merger would involve
A merger between two listed companies usually requires a definitive agreement setting out how shares of one company would be exchanged for shares of the other. This exchange ratio is often the most closely watched term. The agreement would then need approval from shareholders and, in many cases, from regulators. No terms of this kind have been disclosed.
The two businesses
SpaceX operates rocket launches, the Starlink satellite internet service and an AI business called Super Intelligence. In the third quarter of 2026, it reported revenue of $14.6 billion and net income of $4.4 billion. Tesla makes electric vehicles and energy storage products and is developing self-driving software, the Cybercab and the Optimus humanoid robot.
Shareholder approval
In a merger of two listed companies, shareholders of each company usually vote on the transaction. Because Musk is a large shareholder in both companies, the role of independent directors and the votes of other shareholders are likely to receive close attention if a deal is proposed.
What to watch
Key items include any statements or regulatory filings by the special committees or the companies, the appointment of advisers, any proposed terms and the views of shareholders of both companies. Comments from Musk or the boards in the coming weeks may also be of interest.
Risks and uncertainties
The discussions may not lead to a transaction. If a deal is proposed, its terms, timing and approval are uncertain. Shares of both companies can be volatile, and moves linked to merger reports may reverse.
What this means for investors
For Investing.one users following SPCX or TSLA, the committees' work and any announcement about possible terms may be relevant. The information above is based on Musk's comments as reported by the media.
Sources
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