SpaceX, Tesla Form Merger Committees as Musk Eyes $6 Billion Payout at $2 Trillion
Updated
Updated · The Verge · Oct 22
SpaceX, Tesla Form Merger Committees as Musk Eyes $6 Billion Payout at $2 Trillion
3 articles · Updated · The Verge · Oct 22
Summary
Special committees at SpaceX and Tesla are weighing a merger that Musk says would unify cars, robots, data centers and software around “superintelligence” development.
Q3 results sharpen the logic: SpaceX reported $7.56 billion in revenue, including about $7 billion from AI infrastructure and solutions, while Tesla posted a second straight profit decline as it pivots toward robots and self-driving.
A stock-for-stock deal could also reshape control. Because Musk holds over 50% voting power at SpaceX but only about 20% at Tesla, a SpaceX-led acquisition could effectively give him control of the combined company.
At a $2 trillion Tesla valuation, a change of control would trigger about $6 billion in shares for Musk and accelerate vesting from his 2018 pay package, even as combined capex could approach $50 billion in Q4.
The talks still face antitrust, national-security and financing questions, but Bloomberg said there is pressure to announce a deal by the first half of 2027 so it can close under the current Trump administration.
Why is Elon Musk pushing to merge Tesla with SpaceX just as the rocket company's AI revenue skyrockets?
Will Tesla shareholders approve the creation of a massive space-auto-AI conglomerate given the unusually high voting thresholds?
SpaceX Achieves Record Q3 2026 Financials With 161% Revenue Growth, Launches Tesla Merger Deliberations
Overview
In October 2026, SpaceX reported record-breaking Q3 results, with revenue and profits far above expectations, fueled by explosive growth in its AI division after acquiring xAI and strong Starlink performance. This financial breakthrough led SpaceX and Tesla to formally explore a merger, forming special board committees and sparking stock gains for both companies. The merger aims to address high chip costs by launching the massive TERAFAB semiconductor venture with Intel, and to overcome data center limits by planning a vast orbital AI satellite network. However, the deal faces major regulatory, financial, and governance challenges, including balancing heavy capital needs and managing global security concerns.