Tesla and SpaceX have each established special committees of independent directors to examine a potential merger, Elon Musk said during SpaceX’s third-quarter earnings call on Tuesday. However, the billionaire cautioned that a transaction remains uncertain, with no agreed terms or guarantee that the discussions will lead to a deal.
According to Musk, the committees were formed at shareholders’ request. Neither SpaceX’s earnings filing nor a Tesla filing mentions the committees, leaving his remarks during the SpaceX investor webcast as the only disclosed source of information about their formation.
The comments follow renewed speculation about a possible combination of the two companies after activity involving Tesla and SpaceX executives on X. They also represent a shift in tone from Musk’s earlier dismissal of a report linking a potential SpaceX merger to the sale of Tesla’s China operations, which he described as “fake news.”
Independent Committees to Assess Merger Proposal
Musk said his leadership roles at both companies mean he is considered a conflicted party and cannot participate in the committees’ discussions.
So both SpaceX and Tesla have formed special committees to discuss this idea at the request of shareholders. And these special committees are [consisting] of independent directors, and because I’m a conflicted party, I can’t actually be in the discussions of the special committees. So it’s an odd kabuki dance where two groups of people are talking and I can’t be in the conversation.
Neither company has disclosed the committee members or published a formal merger proposal.
Musk expressed support for the idea but rejected suggestions that a combination was inevitable.
I think some people out there assume that a SpaceX and Tesla merger is a certainty, and I think that would be overstating it. Do I think it would be a good idea? Yes.
He added that the committees had not agreed on transaction terms and that there was no guarantee an agreement would be reached.
Tesla Shareholder Approval Could Be a Major Hurdle
One potential obstacle is the level of shareholder support required at Tesla. Musk said a merger would need approval from holders of 50% of all Tesla shares, rather than a majority of shares actually voted.
He described that requirement as “quite a high hurdle to try to achieve.”
Any transaction would still need to progress through the relevant corporate approval processes, including shareholder consideration. With no disclosed terms or formal proposal, the structure and feasibility of a potential deal remain unclear.
Potential Synergies Across Technology and Space
Musk argued that combining the companies could create opportunities across several technology and infrastructure areas. These include superintelligence software, chip design, the Terafab project, robotics, launch capacity for the Starlink satellite constellation and connectivity services.
Such a combination could bring together Tesla’s electric vehicles, robotics and manufacturing activities with SpaceX’s launch systems and satellite communications operations. However, the companies have not announced a formal plan detailing how their businesses or assets might be combined.
According to The Wall Street Journal, analysts are taking the possibility seriously despite the absence of a formal plan. Barclays analyst Dan Levy said a deal could be announced ahead of Tesla’s annual meeting scheduled for December 3.
For now, the independent committees’ discussions remain exploratory. Until the companies disclose proposed terms and secure the necessary approvals, a Tesla–SpaceX merger remains a possibility rather than a confirmed transaction.