SpaceX and Tesla May Announce the Largest Merger in History in December — Bloomberg

SpaceX and Tesla have made progress in negotiations over a record-breaking merger, according to Bloomberg sources . According to their information, Elon Musk’s two companies could announce the deal as early as December. Tesla shares rose 1.8% in trading on November 12, while SpaceX shares gained 0.3%—amid a broader market decline following the resignation of Nvidia CEO Jensen Huang.

According to sources who spoke with Bloomberg, the boards of directors and advisors are currently negotiating the terms of the merger, the governance structure of the combined company, and other issues. A scenario in which the announcement of the deal would be postponed until early 2027 was also discussed. Tesla’s annual shareholders’ meeting is scheduled for December 3.

The deal could set a new benchmark for the M&A market: SpaceX’s market value exceeds $1.9 trillion, while Tesla’s market capitalization is approximately $1.5 trillion. The result could be a conglomerate combining the production of electric vehicles, energy storage batteries, rockets, and satellites. The rationale behind bringing these assets under one roof lies in a shared commitment to applying artificial intelligence in space, self-driving cars, and humanoid robots.

The tight deadlines reflect Musk's tendency to act quickly on corporate matters, according to Bloomberg. The agency previously reported that he is rushing to complete the merger before the end of Donald Trump's presidential term.

Representatives from Tesla and SpaceX did not respond promptly to requests for comment.

Before closing the deal, the companies will have to overcome a number of obstacles, including figuring out how to spin off Tesla’s Chinese business, Bloomberg sources said. National security requirements related to SpaceX’s government and defense contracts in the U.S. and Tesla’s large, profitable manufacturing operations in China are “key factors that conflict with one another,” when it comes to securing approval from regulators and shareholders, JPMorgan analyst Rajat Gupta wrote in October.

In addition, the merger will serve as a major test of political sentiment following the U.S. midterm elections. The Democrats, having gained control of Congress, have promised to investigate Musk’s business and political activities. Furthermore, although Congress cannot single-handedly block the deal, the Democrats could slow it down, warned Vikram Rai of First New York after the election.

This article was AI-translated and verified by a human editor