Catenaa, Friday, November 13, 2026- SpaceX and Tesla are closing in on a merger deal as soon as December, Bloomberg News reported as negotiations progress.
Bloomberg News reported that SpaceX and Tesla are negotiating a potential merger that could be announced in December, although the companies are also considering a possible announcement in early 2027.
People also told Bloomberg News that the two companies have also discussed a scenario in which an announcement slips into early 2027.
Directors and advisers from both businesses are discussing the transaction’s terms and the governance arrangements for a combined company, according to people familiar with the private negotiations cited by Bloomberg.
The merger would consolidate Musk’s interest in electric vehicles, energy storage batteries, rockets and satellites.
According to Bloomberg News, integrating the two businesses would allow Musk to bring all the assets needed to expand AI across space, autonomous cars and humanoid robots.
People told Bloomberg News that obtaining regulatory approval for the merger would be challenging, as Tesla maintains manufacturing in China while SpaceX holds sensitive US government and defense contracts.
JPMorgan analyst Rajat Gupta told clients in a research note last month that the different operating environments of the two companies loom as “key dynamics that are at odds with each other” when it comes to getting regulatory and shareholder approvals for a deal.
According to Bloomberg News, the merger would face additional scrutiny from the US Congress after US midterm elections, as Democrats have pledged to probe Musk’s business and political dealings.
In October, Musk said the companies’ boards had formed special committees of independent directors to consider combining.
SpaceX has a market value of more than $1.9 trillion following its initial public offering, while Tesla is worth about $1.5 trillion. Tesla is slated to host its annual shareholder meeting on December 3.
Bloomberg News reported that SpaceX and Tesla were pushing to announce a deal by the first half of next year, aiming to close the merger before the end of President Donald Trump’s term.
One factor being discussed is how many shares SpaceX would have to offer Tesla investors in the transaction.
SpaceX and Tesla have already collaborated in tech projects, including the Terafab semiconductor manufacturing initiative in Texas.
According to Bloomberg News, SpaceX has transformed in recent years from a leading rocket manufacturer and launch provider into a major supplier of AI infrastructure to companies including Anthropic, as well as a top internet provider.
