SpaceX and Tesla Exploring Merger
Source reports published 20 Oct 2026, 10:00 am – 21 Oct 2026, 3:53 pm AEST
SpaceX and Tesla are exploring a merger, a potential tie-up worth over $3 trillion. Committees have been formed to assess the possibility, with Musk stating it would combine their complementary work in AI and technology, though a shareholder vote is required.
What happened
- SpaceX announced its second-ever public earnings report, revealing a 161% revenue growth driven by Starlink and AI, with revenue of $14.58 billion and earnings per share of 35 cents.
- Elon Musk stated that SpaceX and Tesla have formed special committees to explore a merger, citing ‘a lot to be gained’ in combining their technologies, including chips, AI, and robotics.
- David Nicholson of The Futurum Group noted the symbolic Roadster unveiling as a hint of the merger.
- SpaceX’s role in international affairs, particularly its Starlink service disruption in Ukraine, has been scrutinized.
- Elon Musk denied responsibility, stating that StarShield was controlled by the US government.
- Jerayr Haleblian of the University of California, Riverside, suggested the merger has ‘sound logic’ due to the companies’ manufacturing expertise and potential for synergistic innovation.
- Shares of both SpaceX and Tesla rose following Musk’s announcement.
- The merger would require shareholder approval, with at least 50% of Tesla’s shareholders needing to vote in favor.
- Musk stated that the special committees would be comprised of independent directors.
Original reporting
- Guardian: SpaceX’s revenue jumps in second-ever earnings report amid Starlink turmoil
2026-10-20T00:00:00+00:00 - BBC: Tesla and SpaceX: Why does Elon Musk want to merge the companies?
2026-10-21T04:13:14.888000+00:00 - Al Jazeera: Elon Musk says SpaceX and Tesla exploring largest merger in history
2026-10-21T00:00:00+00:00 - Deutsche Welle: Musk says SpaceX-Tesla merger 'good idea' as companies explore union
2026-10-21T05:53:40.335000+00:00