Negotiators from Elon Musk’s automotive and aerospace empires are progressing toward a corporate tie-up that would merge Tesla and SpaceX, with a formal announcement possible as early as December. Both companies established independent merger committees in October to hammer out governance structures and the ratio of SpaceX shares that Tesla investors would receive, though some advisers suggest the timeline could slip into early 2027.
The proposed deal would combine SpaceX’s estimated $1.9 trillion valuation with Tesla’s $1.5 trillion market capitalization to create an entity valued at $3.4 trillion. The merger faces hurdles including scrutiny from Texas Attorney General-elect Nathan Johnson and potential regulatory conflicts between SpaceX’s U.S. defense ties and Tesla’s China operations. If the combination proceeds and SpaceX absorbs Tesla, it would also provide the rocket company a path toward inclusion in the S&P 500 Index.