What Musk said on the call
Elon Musk said on SpaceX's third-quarter earnings call on Tuesday, 20 October 2026, that he would like to see SpaceX and Tesla formally merged. Asked by an analyst from Deutsche Bank about the pros and cons, the chief executive of both companies described himself as a conflicted party who could not take part in the discussions. The call was the second quarterly conference since SpaceX's stock market debut. He still said such a combination would be a sound idea, while noting that the decision rests with shareholders.
I think it would be a good idea. But it's really up the special committees of both companies.
Committees and conditions
At the request of shareholders, SpaceX and Tesla have each formed a special committee of independent directors to discuss a merger. Musk said those committees have not agreed on the terms of any transaction. He added that a deal is not certain, and he called the approval bar high, since 50% of Tesla shareholders would need to back it. Musk listed the expected gains as cooperation on software, chip design, robotics and connectivity, saying there is a lot to be gained.
The special committees have not reached agreement on terms of any transaction and there's no guarantee that they will.
Background and ownership
SpaceX acquired Musk's artificial intelligence firm, xAI, in February, and went public in June in the largest initial public offering on record. SpaceX's public financial documents point to orbital data centers as the bulk of its future revenue, providing computing for artificial intelligence on Earth. Tesla's future lies in self-driving cars, robots and industrial hardware, and both businesses would need advanced chips and energy. Based on SpaceX's IPO documents, Musk holds more than 82% of voting power in SpaceX, against about 20% at Tesla, and a merger would give him more control.
- SpaceX acquires Musk's artificial intelligence firm xAI
- SpaceX goes public in the largest initial public offering on record
- Barclays client note suggests a possible announcement before the December meeting
- Musk says special committees are exploring a merger on the SpaceX earnings call
- Tesla annual shareholder meeting scheduled
Chips and timing
Musk said ASML Holding and other suppliers of chipmaking machines have expedited deliveries for Terafab, the semiconductor project shared by Tesla and SpaceX. He described the timelines as very aggressive. A Barclays client note published earlier in October suggested a Tesla-SpaceX combination could be announced before Tesla's annual shareholder meeting on 3 December 2026. The special committees have yet to agree on terms.