SpaceX, Tesla merger talks progress, Bloomberg reports
Merger talks between SpaceX and Tesla are advancing, with a potential deal announcement as early as December, according to Bloomberg News. The union would face regulatory scrutiny over defence contracts and China ties.
SpaceX and Tesla are progressing in merger negotiations, with a deal potentially announced as early as December, Bloomberg News reported on Thursday, citing sources familiar with the matter.
The proposed merger would bring together Elon Musk's artificial intelligence, robotics, electric vehicle and aerospace operations under one corporate structure. However, it faces significant regulatory obstacles related to SpaceX's US defence contracts and Tesla's reliance on China.
During a SpaceX third-quarter earnings call last month, Musk said a merger with Tesla would be "a good idea" and confirmed the companies had formed special committees of independent directors to discuss a union.
Neither SpaceX nor Tesla could be immediately reached for comment on the Bloomberg report. As of the last market close, SpaceX had a market capitalisation of about US$1.90 trillion (HK$14.82 trillion), while Tesla was valued at roughly US$1.55 trillion.
The report also indicated that the companies have discussed a scenario in which the announcement slips into early 2027.
SpaceX and Tesla also operate a joint venture in chip manufacturing, Terafab. According to Musk, the joint venture should produce its first test chip around May or June of next year and aims to reach volume production by the third quarter of 2028.