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Tech · October 21, 2026

Elon Musk Says SpaceX and Tesla Are Exploring a Merger

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Elon Musk has announced that Tesla and SpaceX are formally exploring a potential merger, which would consolidate his holdings in electric vehicles, aerospace, and artificial intelligence. Both companies have formed special committees of independent directors to evaluate the deal following requests from shareholders. Musk, who serves as CEO and a major shareholder of both firms, stated he is recusing himself from committee discussions due to a conflict of interest. He justified the move by citing the increasing overlap between the companies in robotics and AI, framing it as a step toward a "superintelligence singularity." The proposed entity could be valued at upwards of $3 trillion, though any final deal remains subject to committee approval, shareholder votes, and regulatory scrutiny.

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Reported by multiple outlets

  • SpaceX and Tesla are exploring a possible merger.
  • Special committees of independent directors have been formed at both companies to discuss the terms.
  • The exploration of a merger was initiated at the request of shareholders.
  • Elon Musk is a 'conflicted party' and is not participating in the special committee discussions.
  • Musk cites synergies in artificial intelligence and robotics as the primary merit for the combination.
  • Musk confirmed the news during SpaceX's third-quarter earnings call on Tuesday.

Reported by only some outlets

  • SpaceX acquired Elon Musk's AI company, xAI, in February 2026.
  • SpaceX went public in June 2026 with the largest initial public offering on record.
  • Elon Musk controls approximately 82 percent of the voting power at SpaceX.
  • Ira Ehrenpreis serves as an independent director on the boards of both Tesla and SpaceX.
  • Tesla's $2 billion investment in xAI was converted into SpaceX stock following SpaceX's acquisition of the AI firm.

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