SpaceX and Tesla, both controlled by Elon Musk, are moving toward a merger that could be announced as soon as December, Bloomberg reported, according to Electrek. According to the report's sources, negotiations are over price and control, with boards and advisers on both sides involved. December is the target, but early 2027 is also possible. Neither company commented, and Tesla stock rose as much as 1.9% on the report.
One open issue is how many SpaceX shares Tesla shareholders would receive, meaning SpaceX would absorb Tesla. According to Electrek, SpaceX is valued at over $1.9 trillion after its June IPO and Tesla at about $1.5 trillion. Such a deal would be the largest ever.
According to Bloomberg, one obstacle is how to ring-fence Tesla's China business, since SpaceX works with the Defense Department and the government. Tesla's Shanghai factory builds more than half of the company's cars. Tesla's shareholder meeting is on December 3, where the same directors who would need to approve the deal are up for re-election.
Electrek also raises the question of control: Musk owns about 20% of Tesla but, according to SpaceX's IPO filing, controlled about 85% of its voting power through super-voting shares. According to the site, the terms of Musk's 2025 pay package could vest shares immediately on a change in control.