Elon Musk has confirmed that both Tesla and SpaceX have taken the first formal step toward a possible merger, forming special committees of independent directors to study the idea. This move follows months of speculation and signals a significant development in the relationship between the two companies.
Special Committees Begin Merger Discussions
During SpaceX’s third quarter earnings call, Elon Musk revealed that ‘Both SpaceX and Tesla have formed special committees to discuss this idea at the request of shareholders.’ These committees, made up of independent directors, are tasked with evaluating the potential for a merger between the two companies.
Musk clarified his own role in the process, stating, ‘Because I’m a conflicted party, I can’t actually be in the discussions of the special committees.’ He described the situation as ‘an odd kabuki dance where two groups of people are talking and I can’t be in the conversation.’
Musk’s Support and the Merger Hurdles
Elon Musk did not hide his support for the idea, saying, ‘Do I think it would be a good idea? Yes,’ and highlighting the shared work between Tesla and SpaceX on super intelligence software, chip design, robotics, and connectivity. He added, ‘I do think there’s a lot of merit to combining the companies as we are pretty much in the super intelligence singularity…’
However, Musk also cautioned that a merger is far from certain. He noted that the committees have not agreed on any transaction terms and that assuming a merger is a certainty ‘would be overstating it.’ Any deal would require approval from 50 percent of all outstanding Tesla shares, not just those that are voted, which Musk called ‘quite a high hurdle.’
Shareholder Approval and Recent Precedents
The need for broad shareholder approval is significant, especially given Tesla’s recent history. In 2025, an attempt to declassify Tesla’s board failed after receiving support from only 39.4 percent of outstanding shares. Musk’s own voting stake in Tesla is near 20 percent after exercising his 2018 options in June, meaning institutional and retail shareholders would need to provide substantial backing for any merger to proceed.
Current Status and Next Steps
Tesla filed its proxy statement on Monday for its December 3 annual meeting, but the ballot includes only three items: director elections for Musk, Robyn Denholm, and JB Straubel, a say on pay vote, and auditor ratification. With no merger terms agreed, any shareholder vote on a merger would likely require a separate special meeting.
SpaceX reported strong financial results, with Q3 revenue of $14.58 billion, up 161 percent year over year. Its Super Intelligence segment alone accounted for $7.56 billion in revenue. Tesla holds a small SpaceX stake from an earlier investment in xAI.
Why this matters
The formation of special committees at both Tesla and SpaceX marks the first official step toward a potential merger, a move that could reshape the landscape of both the automotive and aerospace industries. Elon Musk’s open support for the idea, combined with the companies’ shared projects in advanced technology, signals the possibility of deeper integration.
However, the process faces significant hurdles, including the need for broad shareholder approval and the lack of agreed terms. The outcome will depend on the willingness of Tesla’s diverse shareholder base to support such a transformative deal.
What this means for buyers
For Tesla and SpaceX investors, the formation of special committees is a signal to closely monitor upcoming announcements and shareholder communications. No immediate changes are expected for customers or product lines, but any merger could have long-term implications for both companies’ strategies and offerings.
Shareholders should be prepared for further updates, including the possibility of a special meeting to vote on any proposed merger terms.
Key Specs
- Special Committees Formed: October 2026
- Required Approval for Merger: 50% of all outstanding Tesla shares
- Elon Musk’s Tesla Voting Stake: Near 20%
- SpaceX Q3 2026 Revenue: $14.6B (~AUD 20.9B)
- SpaceX Super Intelligence Q3 Revenue: $7.6B (~AUD 10.8B)
- Tesla Annual Meeting Date: December 3, 2026
Images sourced from: teslarati.com, snopes.com
