According to Tesla and SpaceX, the boards of directors of both companies have formed special committees of independent directors to evaluate a possible merger. Elon Musk supported the idea but stressed that no decision on a merger has been made yet.
Committee composition and Musk’s role
The committees were formed at shareholders’ request and are tasked with assessing the merits of a potential combination. Elon Musk himself will not take part in their work because of a conflict of interest, as he runs both companies and owns significant stakes in them.
The parties have not yet agreed the terms of any potential deal, and its completion is not guaranteed. According to Musk, a merger could simplify cooperation between Tesla and SpaceX in areas such as artificial intelligence (AI), semiconductors, robotics, energy and satellite communications.
Financial and technological links between the companies
The companies already have financial and technological ties: in March Tesla invested about $2 billion in SpaceX, and in the first half of 2026 it sold SpaceX Megapack battery systems worth $405 million. These transactions reflect existing collaboration between the business groups.
Beyond financial deals, Tesla and SpaceX cooperate technologically: Tesla showcased a Roadster with SpaceX rocket thrusters, and Megapack units are used in the space company’s infrastructure projects. In February, SpaceX acquired xAI’s parent company, bringing together its space, telecommunications and AI businesses.
Scale estimates and financial performance
The scale of a potential merger would be unprecedented: Tesla’s market capitalisation is nearly $1.5 trillion, while SpaceX, after its most recent valuation, is worth more than $2 trillion. However, these figures do not automatically determine the value of any deal.
In the third quarter SpaceX reported $14.6 billion in revenue and $4.4 billion in profit. Its artificial intelligence (AI) division has become the company’s largest source of revenue, while Starlink remains its most profitable business.
