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SpaceX and Tesla start reviewing a merger. What it would take

· 2 min read · Drafted with AI help, reviewed by Kepler Oates

Elon Musk's two biggest companies might become one. On SpaceX's third-quarter earnings call, Musk said the boards of SpaceX and Tesla have each formed a special committee to review a possible merger, TechCrunch reports. Nothing is agreed yet. Here is what was announced and what would have to happen.

What was announced

  • Two committees, one question. Each company's board set up a committee of independent directors to study a merger. Musk said they were formed at shareholders' request.
  • Musk is out of the room. He is CEO and the largest individual shareholder of both companies, and said that as a conflicted party he cannot take part in the committees' discussions. He is not on either committee, and he did not name who is.
  • No terms yet. The committees have not agreed on any deal. Musk supports the idea but said it is not guaranteed: "the shareholders have to be supportive of this."

Why do it

Musk pointed to work the companies already share or could share, per TechCrunch:

  • AI software and robotics.
  • Starmind, SpaceX's project for AI data centers in orbit.
  • Terafab, a joint chip-manufacturing project between Tesla and SpaceX.

The news follows last week's joint Tesla and SpaceX stunt, the flying Roadster.

InteractiveWhat each side would needPick a company.
  • SpaceX: Musk controls the vote. Committee: Formed, independent directors only. Musk's voting power: More than 50% after the IPO, per TechCrunch. What that means: Shareholder support would be easier to secure. Independent directors listed: Six, including Steve Jurvetson and Roelof Botha.
  • Tesla: Needs a broad shareholder vote. Committee: Formed, independent directors only. Approval needed: 50% of all shareholders, not just those who vote, per Musk. Independent directors listed: Seven, including chair Robyn Denholm. Musk's stake: Largest individual shareholder; exact share not given.

Source: TechCrunch, Oct 20, 2026, citing Musk's earnings-call remarks and an Oct 19 Tesla proxy filing. Committee members were not named.

What is still unknown

  • The terms. No structure, share swap or price has been proposed publicly.
  • The values. TechCrunch did not give a valuation for either company.
  • The timeline. There is no date for a decision, and no detail on regulatory reviews.

The conflict-of-interest question

Special committees of independent directors exist for exactly this situation: when the same person sits on both sides of a deal, outsiders are supposed to judge whether it is fair to everyone else. There are overlaps to watch. Ira Ehrenpreis appears on both companies' lists of independent directors, and Valor Equity Partners, led by Musk ally Antonio Gracias, holds a 3.4% stake in SpaceX and has financed its AI hardware, TechCrunch reports.

What to watch

  • Who sits on each committee, and whether they hire their own advisers.
  • Any proposed terms, and how Tesla's broad shareholder vote would be organized.

Not financial advice. This summarizes public reporting. Do not buy or sell anything on the strength of a blog post.

Sources

Not financial advice. This summarizes public reporting for information only. It is not investment, tax or legal advice. Do your own research or talk to a licensed professional.