RismadarVoice Reporters
October 21, 2026
American billionaire Elon Musk has confirmed that Tesla and SpaceX are exploring a potential merger that could create a technology conglomerate valued at approximately $3.5 trillion.
Musk disclosed the development on Tuesday, October 20, during SpaceX’s third-quarter earnings conference call, saying both companies had formed special committees to review the proposed combination.
According to him, the committees comprise independent directors appointed to assess the commercial, financial, and governance implications of combining the two companies. The development marks a significant step towards a possible consolidation of Musk’s business interests, spanning electric vehicles, space exploration, satellite communications, artificial intelligence and robotics.
Musk expressed support for the proposal, arguing that combining the businesses could strengthen cooperation in developing advanced technologies.
He highlighted opportunities involving artificial intelligence software, semiconductor development, robotics and computing infrastructure.
However, the billionaire cautioned that the discussions remained preliminary and that a merger was not guaranteed.
Musk explained that he would not participate directly in the special committees’ deliberations because of potential conflicts of interest arising from his ownership interests in both companies.
The committees were established following requests from shareholders seeking an assessment of the proposed transaction.
Under the possible arrangement, Tesla’s electric vehicle manufacturing, energy storage and robotics operations could be brought together with SpaceX’s rocket development, satellite internet and artificial intelligence businesses.
Analysts estimate that the combined market value of the companies would be approximately $3.5 trillion, based on their prevailing valuations.
Such a transaction, if completed, could rank among the largest corporate mergers in history.
However, the estimated valuation does not represent an agreed purchase price or a final assessment of the proposed transaction.
Musk also acknowledged that shareholder approval would be necessary before any agreement could proceed.
He noted that securing the required support from Tesla shareholders could present a significant challenge.
The discussions come as SpaceX expands its activities beyond aerospace and satellite communications into artificial intelligence infrastructure.
The company has also reported strong revenue growth supported by rising demand for computing services and its Starlink satellite internet business.
A potential merger could enable the companies to share technological resources, research capabilities and investment opportunities more closely.
Nevertheless, the proposal is expected to attract scrutiny concerning corporate governance, shareholder interests and the management of Musk’s expanding business empire.
As of October 21, neither company has announced a binding merger agreement, an agreed transaction structure or a completion timetable.
The outcome will depend on negotiations between the independent committees, regulatory considerations and shareholder approval.
