Elon Musk has proposed the potential merger of his two major companies, Tesla and SpaceX, marking a significant move that could create the largest corporate combination in history. Musk, who leads both companies simultaneously, announced on Tuesday that independent special committees from Tesla and SpaceX are currently assessing the feasibility of a deal. The committees are working alongside legal and financial advisers to evaluate how each company might perform under combined ownership and what the optimal transaction structure would be, with final approval resting with their respective boards.
Musk, speaking to SpaceX investors, characterized the ongoing discussions as a “Kabuki dance,” noting that as CEO of both firms, he is excluded from direct involvement in the committees’ deliberations. The merger aligns with Musk’s vision of integrating autonomous vehicles, humanoid robots, frequent rocket launches, satellite networks, and AI-driven data centres into a unified ecosystem.
Tesla and SpaceX have long shared resources, personnel, and engineering expertise, reflecting their interconnectedness under Musk’s leadership. In 2025, for instance, SpaceX explored developing spacesuits for Tesla’s humanoid robot Optimus, and Tesla’s recent Roadster unveiling prominently featured SpaceX-designed rocket thrusters. Employees and executives often hold dual roles or move between the companies on collaborative projects.
Tesla is valued at approximately $1.5 trillion while SpaceX commands a market capitalization near $2 trillion, driven by growth across its satellite internet service Starlink, rocket launches, and data centre operations. Following Musk’s announcement, shares of both companies experienced gains. Analysts suggest any deal could be an all-stock transaction in which SpaceX might pay a modest premium for Tesla shares.
Musk’s controlling stakes—about 20% in Tesla and more than 80% voting power in SpaceX, following its June IPO—place him in a position to steer the merger process. Despite this, regulatory scrutiny is anticipated internationally, given the scale of the companies and their expanded influence, though Musk’s connections with previous U.S. administrations may factor into the review.
The companies have revealed some financial interdependencies, including Tesla’s reported $143 million in vehicle sales to SpaceX last year, $3.3 million spent by SpaceX for advertising on the social media platform X, and $430 million in revenue from the sale of Tesla Megapack batteries to SpaceX data centres. Additionally, costs related to Musk’s personal jet and security are shared between the two firms.
Tesla’s public ownership status subjects it to greater external oversight, including accountability to individual shareholders who control roughly 30% of voting power, but Musk has been granted avenues to increase his influence over the company. Meanwhile, SpaceX’s IPO structure affords Musk dominant voting control.
As evaluations by the special committees continue, Musk’s vision is clear: to consolidate Tesla and SpaceX to accelerate development and deployment of cutting-edge AI technologies, autonomous systems, and space operations under a cohesive corporate structure. Whether the merger moves forward remains uncertain, pending board decisions and regulatory approvals.