Hailey Whitlock, Editor
On Oct. 20, 2026, SpaceX had its 2026 third-quarter earnings call, updating investors and stakeholders to hear important metrics and updates for the future of the company. These calls, held quarterly, play an important role as they guide investors in making decisions that ultimately affect the company’s stock price. During this call, there was a discussion about potentially merging SpaceX and Tesla, two companies largely managed by Elon Musk.
Per Time, Elon Musk said to investors on the conference call, “I do think there’s a lot of merit to combining the companies [SpaceX and Tesla] as we are pretty much in the superintelligence singularity, and there’s a lot to be gained from cooperating. I think it would be a good idea, but it’s really up to the special committees of both companies.” As of late, SpaceX and Tesla have become much more similar, moving heavily into the AI sector as well as focusing on robotics. Already, the two companies collaborate quite frequently; a merger could further these relationships, allowing a broader sharing of resources. Per Time, Morningstar analysts Seth Goldstein and Nicholas Owens wrote in June, “This would allow him [Musk] to run all their operations under one roof without tripping on as many governance issues. For example, Musk could move Tesla software developers or engineers to work on SpaceX AI projects, or vice versa, or have Tesla and SpaceX supply one another without the need for related party transaction disclosures or risking shareholder lawsuits claiming the resources of one firm are being diverted for the benefit of another.”
In light of these reasons, as well as the influence that Musk himself holds within the companies, many experts expect the companies to merge; some speculate this combination would happen as early as year-end. However, before that happens, there must be consensus between the two companies. Already, committees have been formed at each company to consider the benefits and potential drawbacks of the merger. Musk himself has recused himself from the proceedings, noting that to serve on either committee could be considered a conflict of interest to the discussions. When speaking about the merger as stated by Yahoo Finance, Musk said, “The special committees have not yet reached agreement on terms of any transaction, and there’s no guarantee they will.” Still, stock prices for SpaceX jumped 7% after the call and Tesla shares climbed 1% (a notable amount considering the call was only meant to speak on SpaceX’s performance as a company.)
Nevertheless, there are conflicts that could potentially derail the deal, chief among them Musk’s involvement. Some critics argue that Musk is influencing the deal, placing his personal desires above the desires of the company. When asked why he did not more ardently support the merger, Musk commented, per the Motley Fool, “This is definitely the kind of question where I feel I am tap dancing through a minefield.” While he has tried to strike much of his involvement with the deal, remaining independent of the committees considering the issue, it is still a valid concern. Other concerns include national security with Tesla operating in China and SpaceX carrying out defense work for the US government. This raises hesitations about the stability of the company’s combined supply chain should tensions with China persist and the eventual impacts on national security if SpaceX is unable to carry out this defense work. In addition the sheer size of this deal, potentially creating a company of about $3.5 trillion, will draw additional oversight and regulation.
Overall, there is the potential for a merger between SpaceX and Tesla, due to the shared commonalities between the two companies. This possibility is currently debated by special committees evaluating the positives and negatives of this decision. If electing to merge, the deal would rank one of the largest company mergers in history, having substantial impact on the US economy.
