TLDR Tesla and SpaceX merger talks are moving forward. A deal could be announced in December or in early 2027. Boards and advisors are drafting terms and governance. SpaceX’s defence contract
Tesla and SpaceX are moving forward with talks on a possible merger. A deal could be announced as soon as December, according to Bloomberg News. The people who shared the details are familiar with the matter.
BREAKING: SpaceX and Tesla could announce a record $3.4 trillion merger as soon as December, per Bloomberg.
It would become the world's 5th largest company. pic.twitter.com/0zso3fsfkq
— Bull Theory (@BullTheoryio) November 13, 2026
The companies have also talked about a later date. The announcement could instead come in early 2027. The news was first reported on Thursday.
Boards of directors and advisors at both companies are working on the terms of the deal. They are also working out how the combined company would be governed. Those details are still being shaped.
Elon Musk spoke about the idea on SpaceX’s third-quarter earnings call last month. He said a merger with Tesla would be “a good idea.” He also confirmed that the companies had formed special committees.
The committees are made up of independent directors. They were formed to discuss a union of the two companies. Musk confirmed their creation publicly.
Tesla and SpaceX could not be immediately reached for comment on the news. Neither company has announced a deal. Both boards are still working on terms.
At the last close, SpaceX had a market value of about $1.90 trillion. Tesla was valued at around $1.55 trillion. Each company is worth more than $1 trillion.
Added together, the two values come to about $3.45 trillion. A merger would bring Musk’s work in artificial intelligence, robotics, electric vehicles and aerospace under one roof. All of it would sit inside a single company.
The proposed deal faces steep regulatory hurdles. One is SpaceX’s work on United States defence contracts. Another is Tesla’s reliance on China.
SpaceX has a close relationship with the US government. Sources said that link could make Tesla’s China operations an issue. They described the China business as a possible obstacle.
Tesla’s China business is one of two issues named. The defence contracts held by SpaceX are the other. Both are listed as possible obstacles to an agreement.
The two companies already work together on a chip manufacturing joint venture called Terafab. The project has its own schedule. Musk shared that schedule on the earnings call.
The first test chip should be produced around May or June of next year. Musk gave that timeline on the call. It is the first output the venture is expected to deliver.
The venture aims to reach volume production by the third quarter of 2028. That goal is more than a year after the planned test chip. Terafab continues alongside the merger talks.
Musk made his comments last month, before the latest reports on timing. Talks are now progressing, and December is the earliest date discussed for an announcement.
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