Tesla and SpaceX reportedly form committees to explore a merger

Elon Musk said Tesla and SpaceX have formed committees of independent directors to explore a possible merger, Axios' Nathan Bomey reports. Musk made the comments on SpaceX's earnings call on Oct. 20, 2026. Gizmodo's Ece Yildirim reports that the committees had not yet agreed on terms.

Musk, who leads both companies, distinguished his preference from the committees' work. “Because I'm a conflicted party, I can't actually be in the discussions,” he said, according to Axios. “I think it would be a good idea.” Musk argued that cooperation on AI, chips, robotics and connectivity could benefit the companies, Axios reports.

Even if the committees reach an agreement, shareholders would have to approve a deal at both companies, Gizmodo reports. Musk said approval from half of all Tesla shareholders, not just half of those who vote, would be required. Yahoo Finance quoted Musk saying that treating a merger as certain “would be overstating it.”