An agreement between Tesla and SpaceX could unite businesses valued above $3.4 trillion, while Bloomberg reported that talks have advanced to questions about ownership and oversight of a combined company.
Bloomberg's figures put Tesla's market capitalization at about $1.5 trillion; SpaceX was valued above $1.9 trillion after its June initial public offering. Those are separate valuation measures, not an announced merger price. Their operations range from electric cars and energy storage to rocket launches and satellite links.
People familiar with the talks told Bloomberg that the companies are still addressing how equity would be divided between their investor groups and how a combined business would be governed. Bloomberg reported Nov. 12 that an announcement could come in December, although discussions may extend into early 2027.
Tesla's third-quarter filing says a committee of disinterested directors is evaluating a potential business combination with SpaceX. If the companies reach an agreement, a transaction would need an affirmative recommendation from that committee and any required shareholder approval. The filing also says there is no assurance the process will produce a deal.
Elon Musk, CEO of both companies, said on SpaceX's Oct. 20 earnings webcast that shareholders had asked them to consider a merger. He said his conflict of interest kept him out of the committees' discussions. EconoTimes previously reported on the committees' review.
