SpaceX-Tesla Merger Could Come Soon: What Do Shareholders Get?
Bloomberg reported Thursday that merger talks between SpaceX and Tesla are progressing, with a deal potentially announced as early as December, creating a combined entity worth about $3.5 trillion.
Bank of America analyst Alexander Perry expects SpaceX to acquire Tesla with stock, not cash, at a 20% premium. Using October 20 prices, this would give Tesla shareholders about 47% of the combined company.
Elon Musk would retain control, with Barclays estimating he would hold roughly 56% of the combined voting power. One Tesla share equaled about 2.8 SpaceX shares before any premium was applied.
Tesla's annual meeting on December 3 has no merger item on the ballot, and Musk has recused himself from the process. Independent committees are now setting the pace for any potential announcement.
Regulatory and Voting Hurdles
Tesla's charter requires a majority of all outstanding shares for any merger, meaning abstentions count as a 'no.' In 2025, this rule defeated a non-binding proposal on Tesla investing in xAI, despite more votes for than against.
Some people out there assume that a SpaceX and Tesla merger is a certainty… I think that would be overstating it.
Musk has expressed a desire to close the deal while President Donald Trump is in office, but Democrats now control both chambers of Congress. China represents a significant regulatory risk, as it is where Tesla builds about half its cars.
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