Bloomberg: SpaceX and Tesla could announce record merger in December

SpaceX and Tesla have made headway in talks over what would be the largest merger on record, Bloomberg reports, citing people familiar with the matter. The two Elon Musk companies could announce a deal as early as December, the people said. Tesla shares rose 1.8% on Thursday and SpaceX gained 0.3% as the broader market fell following the departure of Nvidia CEO Jensen Huang.

The companies’ boards and advisers are working out the merger terms, how the combined company would be governed, and other details, the people told Bloomberg. They have also discussed the possibility of announcing the deal in early 2027. Tesla’s annual shareholder meeting is scheduled for December 3.

The deal could set a record for mergers and acquisitions. SpaceX has a market value of more than $1.9 trillion, while Tesla is worth about $1.5 trillion. The merger could create a conglomerate that makes electric vehicles, energy storage batteries, rockets, and satellites. What ties those businesses together is a shared ambition to use AI in space, in self-driving cars, and in humanoid robots.

The tight timeline reflects Musk’s tendency to move quickly on corporate matters, Bloomberg reports. Bloomberg previously reported that Musk was pushing to close the deal before President Trump’s term ends. Representatives for Tesla and SpaceX did not immediately respond to requests for comment.

Before they can close the deal, the companies will have to clear several hurdles, including deciding how to ring-fence Tesla’s operations in China, people familiar with the matter told Bloomberg. The national security requirements tied to SpaceX’s U.S. government and defense contracts and Tesla’s large, profitable manufacturing operations in China are “key dynamics that are at odds with each other” when it comes to securing regulatory and shareholder approvals, JPMorgan analyst Rajat Gupta wrote in October.

The merger would also be a major test of the political climate following the U.S. midterm elections. Democrats, who took control of Congress, have pledged to investigate Musk’s business and political dealings. Democrats could slow the deal even though Congress lacks the power to block it on its own, First New York’s Vikram Rai warned after the elections.