Musk says a SpaceX-Tesla merger would be a good idea, but he can't be in the room
On SpaceX's earnings call, Musk said both boards have independent committees weighing a combination. No terms are agreed, and Tesla would need half of all its shares to vote yes.
By Marcus Rodriguez · · Updated
For information only, not investment advice. Prices delayed.
Elon Musk thinks merging SpaceX ($SPCX) and Tesla ($TSLA) "would be a good idea." He also says he isn't allowed in the room where it's being discussed. Asked about a combination on SpaceX's third-quarter earnings call on Oct. 20, the CEO of both companies said each board has formed a special committee of independent directors "at the request of shareholders," according to the Motley Fool's transcript of the call.
And because I'm a conflicted party, I can't actually be in the discussions of the special committees. So it's sort of -- it's an odd kabuki dance where two groups of people are talking, and I can't be in the conversation.
"I think some people out there assume that a SpaceX and Tesla merger is a certainty. And I think that would be overstating it," Musk said. The committees "have not reached agreement on the terms of any transaction," he added. That's Musk's account of where things stand. Benzinga reports no merger proposal on the agenda for Tesla's Dec. 3 annual meeting, a date Tesla's proxy confirms.
For Tesla holders, the number to watch is his vote math. Musk said a deal would need "a 50% vote of all shares, not just those who vote, but of all shareholders." That is "quite a high hurdle to try to achieve," he said. At SpaceX, where Musk has more than 50% of the voting power, support would be easier to get, TechCrunch noted.
His pitch: "a lot of merit to combining the companies," citing gains from cooperating on AI software, chip design, the Terafab and robotics. Bloomberg notes the two already do business together; SpaceX has bought more than $100 million of Cybertrucks. Tesla shares were up 3.41% at $386.47 as of Oct 21, 4:00 PM ET.
Sources
- SpaceX (SPCX) Q3 2026 Earnings Call Transcript, The Motley Fool
- SpaceX and Tesla boards form special committees to review merger, TechCrunch
- Musk Says SpaceX and Tesla Have Begun Exploring a Merger, Bloomberg Law (Bloomberg News)
- SpaceX, Tesla Form Independent Committees To Explore Merger: Elon Musk Says Deal 'Not A Certainty', Yahoo Finance (Benzinga)
- Elon Musk confirms he is considering merging Tesla and SpaceX, BBC News
- Tesla, Inc. 2026 proxy statement (DEF 14A), Tesla, Inc. (SEC EDGAR)
Tags: mergers-acquisitions · ev-autos · ai · big-tech