SpaceX and Tesla are making progress in talks on a possible merger, and a deal could be announced as soon as December, Bloomberg reported on Thursday, citing people familiar with the matter. The boards of both companies and their advisers are now working through the terms of the combination and the governance of the merged group, though no final agreement has been reached and the timetable could slip into early 2027.
If completed, it would be the largest corporate merger on record. SpaceX has been valued at more than $1.9 trillion since its initial public offering in June, while Tesla is worth about $1.5 trillion, putting the combined value at roughly $3.4 trillion. The reported direction of the deal is SpaceX absorbing Tesla, with Tesla investors receiving shares in SpaceX.
The combined company would span an unusually broad empire: launch services and the Starlink satellite network, defence and national security work, electric vehicles, energy storage, a humanoid robot programme and the Terafab chip venture, whose first test chip is targeted for around May or June 2027.
Musk endorsed the idea of a combination last month and asked both boards to consider it. The boards set up special committees to explore a deal, and the talks have since moved from possibility to active negotiation over price and control. Musk has said there is no guarantee a deal will happen.
Obstacles remain. Separating Tesla’s manufacturing operations in China from SpaceX’s defence business is a reported sticking point, and a transaction of this size would face antitrust review and likely scrutiny from the Committee on Foreign Investment in the United States. Tesla holds its annual shareholder meeting on 3 December, when Musk, chair Robyn Denholm and director JB Straubel face re-election — though the merger itself is not on the ballot.
Markets have started to price in the possibility. Tesla shares rose 1.7% to $397.45 on Thursday. A merger could also give Musk a route into the S&P 500 months after SpaceX was denied swift entry; one estimate from TD Securities puts the index-fund demand created by adding the combined company at about $100 billion, though S&P Dow Jones Indices has declined to change its rules for large new listings.
A note on sourcing: this report rests on Bloomberg’s account, based on unnamed people familiar with the negotiations. Neither company has commented, and Reuters, relaying the Bloomberg report, said it could not immediately reach the companies for comment. No filing or public statement has confirmed the talks’ latest status.
Sources: Bloomberg, “SpaceX and Tesla Talks on Record Merger Are Said to Progress” (12 November 2026), as reported by Reuters (https://www.tradingview.com/news/seekingalpha:7af142ab3094b:0-spacex-tesla-progressing-on-deal-talks-bloomberg/) and Dealroom (https://dealroom.co/news/172424-spacex-and-tesla-move-closer-to-a-record-merger-that-could-be-announced-/).
