Tesla and SpaceX Merger Could Be Announced in December: Report

A Tesla and SpaceX merger may be closer than expected. According to a new report from Bloomberg, which cited people familiar with the matter, merger negotiations between the two companies are progressing, and a deal could be announced as soon as December. The two sides have also discussed the possibility of the announcement slipping into early 2027.

A deal would be one of the largest mergers ever. SpaceX is currently valued at about $1.90 trillion, and Tesla at about $1.55 trillion.

How We Got Here

Last month, Musk confirmed that both companies had formed special committees of independent directors to discuss a merger at the request of shareholders. He said he believes a merger would be a good idea, but he can’t take part in the talks because he’s a conflicted party.

Getting approval at SpaceX should be easy, since Musk controls more than 50% of the voting power. Tesla is a different story. A merger would need support from 50% of all outstanding Tesla shares, not just the shares that vote, which Musk called “quite a high hurdle.” Tesla’s upcoming Annual Shareholder Meeting on December 3 doesn’t include a merger proposal, so any vote would have to come later.

A merger could also face regulatory hurdles, with SpaceX’s U.S. defense contracts clashing with Tesla’s business in China.

Two Close-Knit Companies

The two companies already have close business ties. SpaceX bought about $506 million in Megapacks and $130 million in Cybertrucks from Tesla in 2025, and the new flying Roadster was co-developed with SpaceX.

They’re also partners in Terafab, a massive chip production facility being built in Texas. Musk said during Tesla’s Q3 earnings call that Terafab should produce its first test chip around May or June 2027 and reach volume production by Q3 2028. Those chips will power Optimus, Cybercab, and the orbital AI data centers SpaceX plans to launch aboard Starship.

Some Tesla shareholders want the process to move faster. A letter urging the board to fast-track a deal gathered more than 6,400 signatures representing over 17.5 million shares.

Neither company has confirmed Bloomberg’s report. If talks stay on track, we could see an official announcement within weeks, followed by an expectedly long approval process at both companies and with regulators.