SpaceX and Tesla are advancing merger talks, Bloomberg reported Thursday, citing people familiar with the matter. A deal could be announced as soon as December, and it would be the largest merger ever.
Boards and advisers on both sides are now negotiating the price and control terms, suggesting that the talks have moved beyond the initial idea stage. Early 2027 remains possible if the December target slips.
One key question is how many SpaceX shares Tesla investors would receive. Elon Musk leads both companies, and neither side has confirmed final terms.
Also Read: Tesla-SpaceX Merger Odds Hit 70% After Elon Musk’s USD 100T Prediction
SpaceX’s worth is more than USD 1.9 trillion since its June IPO, while Tesla is valued near USD 1.5 trillion, according to Electrek. That makes SpaceX the likely buyer. The current record for a single deal is Vodafone's USD 183 billion takeover of Mannesmann in 2000.
Neither company has commented, and Tesla stock rose as much as 1.9% after the report. Tesla's China business is one of the main obstacles. A JPMorgan analyst described SpaceX's defense work and Tesla's China footprint as 'key dynamics that are at odds with each other.' Electrek also noted that the companies reportedly want to close the deal before President Trump leaves office.
Also Read: Tesla Stock Rises as SpaceX Merger Talk Fuels Near-Term Upside
Tesla holds its annual shareholder meeting on December 3, and the directors who would approve a deal are up for re-election. Both companies formed special committees of independent directors in October to explore a merger.
Musk has called the idea a good one but said nothing is certain, and Tesla would need approval from a majority of its outstanding shares. Democrats are set to gain control of Congress in January, and Electrek reports that they plan to scrutinize Musk's companies.
Investors should watch for formal filings that name advisers or list proposed terms. Such a filing would be the clearest sign that a deal is near.