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.
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.
The Cybertruck might not have to die after all, at least if Unplugged Performance gets its way. The Tesla tuning company posted an open offer on X to take over Cybertruck production so Tesla can focus on the Cybercab.
“An open offer to Tesla: We fully support putting Cybercab first, and we’d be glad to take the Cybertruck line off your hands,” the company wrote.
The Pitch
Unplugged Performance says it would fund the Cybertruck line through a group of investors and run it without using any of Tesla’s floor space, staff, or attention. It would even let Cybercab have first dibs on battery cells. “We’ll wait our turn,” the company said.
Not a Tesla App
In return, Tesla would get a license fee plus FSD and Robotaxi revenue from every vehicle built. UP also wants to build more than just the pickup, including a three-row CyberSUV and a driverless CyberCargo hauler.
The company admits it couldn’t do this alone, or overnight. It’s gathering investors, recruiting manufacturing talent, and looking for a location near Giga Texas. Production would need to restart, likely at lower volume and higher cost per truck. “A reset is hard, premature death is harder. We choose reset,” Unplugged wrote. Interested investors and partners can email cyber@unpluggedperformance.com, though the company says it isn’t accepting money or commitments just yet, not without an actual discussion with Tesla.
Founded in 2013 and based in Hawthorne, California, Unplugged Performance is the best-known aftermarket tuner for Tesla vehicles. It designs and makes its own performance parts for every Tesla model, including the Cybertruck. Building an entire vehicle would be a big jump from making body kits and wheels.
Tesla hasn’t responded to Unplugged’s offer, and it would face real challenges, from getting enough battery cells to meeting Tesla’s standards for a manufacturer. Still, with a long backlog of orders that Tesla says it can’t fill, Unplugged’s pitch is one possible way to keep the Cybertruck going after Tesla’s line shuts down.
