Tesla, SpaceX Explore Merger Requiring Support From 50% of Tesla Shares

Key Facts

Elon Musk said Tesla and SpaceX had formed committees to explore a potential merger, with any transaction requiring support representing 50% of all outstanding Tesla shares, according to his remarks reported by Investing.com. The committees comprise independent directors, Axios reported, citing Musk's comments on exploring a combination of the companies. Talks began in recent weeks, according to a person familiar with the matter who spoke to Reuters about the ongoing discussions. Tesla is working with an investment bank to advise on the talks, the same source said. Musk said cooperation between the companies could deliver gains in "artificial intelligence, chips, robotics and connectivity," according to Axios.

Musk said his conflicts of interest prevent him from participating in the committees' discussions, according to Axios's account of his position on the potential transaction. He said it would be an overstatement to assume a merger was inevitable as the independent committees explore a possible deal. The companies already have an investment relationship, with Tesla having completed an investment of about $2.00 billion to acquire shares in SpaceX, according to a Tesla regulatory filing. The investment was completed in March 2026, according to the filing with the U.S. Securities and Exchange Commission. The filing also noted that xAI Holdings became a wholly owned subsidiary of SpaceX following its acquisition.

On financial results, SpaceX reported revenue of $14.6 billion for the third quarter of 2026, according to its filing with the U.S. Securities and Exchange Commission. Revenue in the corresponding quarter of 2025 was about $5.6 billion, according to the comparison in the filing. Revenue thus grew 161% year on year during the period, according to the rate reported by the company. Revenue exceeded S&P Capital IQ estimates of $13 billion for the same quarter, according to Axios. The website also reported a consensus net profit forecast of $2.12 billion for the third quarter.

SpaceX's superintelligence segment generated revenue of $7,560 million in the third quarter, according to the company's regulatory filing. Artificial intelligence became SpaceX's largest business by revenue during the period, according to the Associated Press. The Starlink satellite connectivity service remained its biggest profit generator, the news agency said. Most of the company's artificial intelligence revenue comes from renting out data center capacity, according to Reuters's coverage of the quarterly results. Customers of the business include Anthropic, Alphabet's Google and Reflection AI, the news agency said.

SpaceX cited cloud services agreements among the drivers of growth in its superintelligence segment, according to its regulatory filing on the quarter's results. The company also listed the acquisition of Cursor among the factors that supported growth in the business during the period. SpaceX's total capital expenditure reached $19,593 million in the third quarter of 2026, according to figures submitted to the U.S. regulator. The superintelligence segment accounted for capital expenditure of $16,444 million in the same quarter, according to the spending breakdown in the filing. Tesla, meanwhile, reported production of 464,391 vehicles in the third quarter of 2026, according to its investor relations statement on production, deliveries and energy deployments.

In the market, SpaceX shares rose 7.5% in after-hours trading on the evening of its earnings announcement on October 20, 2026, according to the Associated Press. On the upcoming reporting calendar, Tesla scheduled its third-quarter financial results for Wednesday, October 21, 2026, according to an investor relations statement. The company is set to publish the results after the market closes that day, according to the schedule announced to investors. An earnings call will follow the release, according to the same statement on arrangements for the quarterly announcement. The call begins at 5:30 p.m. U.S. Eastern Time, according to the time specified in Tesla's statement.