Tesla and SpaceX explore possible merger, Musk says
Independent directors at both companies are examining a combination that could merge electric vehicles, rockets and satellite internet operations.
At a glance
- Independent directors at Tesla and SpaceX have formed special committees to examine a merger following shareholder requests
- Musk supports the combination but said no terms have been agreed
- A merger would combine electric vehicles, rockets, satellite internet and artificial intelligence operations
- Financial terms including valuations and shareholder returns have not been determined
Tesla and SpaceX are exploring a potential merger, with independent directors at both companies forming special committees to examine the combination following shareholder requests, according to Elon Musk, who leads both firms. Musk said he backs the idea but cautioned that the committees have not yet agreed on terms.
A merger would give Tesla shareholders exposure to SpaceX's satellite internet and launch operations, while SpaceX investors would gain access to Tesla's electric vehicle and robotics businesses. The financial terms of any deal—including company valuations, shareholder returns and voting power—remain undetermined.
Why it matters
A merger would create a combined entity spanning multiple technology sectors, significantly altering investment exposure for shareholders in both companies.
Original reporting
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