# Musk backs SpaceX-Tesla merger plan

> Elon Musk says combining his rocket company and electric vehicle maker could create a three point five trillion dollar company, the biggest merger ever.
- Title: Musk backs SpaceX-Tesla merger plan · TIME | Shortify
- Summary: Elon Musk says combining his rocket company and electric vehicle maker could create a three point five trillion dollar company, the biggest merger ever. Elon…
- Keywords: elon musk, spacex, tesla, merger, artificial intelligence, robotics, starlink, optimus, Musk, backs, SpaceX-Tesla, plan
- Source: TIME — https://time.com/article/2026/10/21/elon-musk-spacex-tesla-merger-tech-business
- Author: Miranda Jeyaretnam
- Published: 2026-10-21T08:45:59+00:00
- Read time: 1 min
- Topics: elon musk, spacex, tesla, merger, artificial intelligence, robotics, starlink, optimus
## Musk backs merger of his two giants
Elon Musk, CEO and largest shareholder of both SpaceX and Tesla, said on Tuesday the companies have formed special committees to discuss combining them.
## Why merge now, Musk says
Musk told SpaceX investors there is merit to combining the companies as they are in the superintelligence singularity and there is much to gain from cooperating.

> I do think there's a lot of merit to combining the companies as we are pretty much in the superintelligence singularity, ​and there's a lot to be gained from cooperating.
## How the deal would work
Special committees of independent directors from both companies would negotiate terms before putting any deal to shareholders for a vote. Musk cannot participate due to conflict of interest.
## The scale of the deal
A merger could create a company worth around three point five trillion dollars, potentially the biggest merger ever by deal value. SpaceX is valued at about two trillion dollars, Tesla at one point five trillion.
## What Musk would gain
A SpaceX acquisition of Tesla could give Musk around thirty-seven percent of the combined company while controlling around fifty-six percent of its voting power, up from his current twenty percent at Tesla.
## Regulatory hurdles ahead
Analysts warn of national security concerns over the combined company's supply chain, regulatory approval challenges in China, and potential congressional scrutiny, particularly over Musk's concentrated voting power.
## How the companies could integrate
Tesla robotaxis could use Starlink connectivity. SpaceX orbital data centers could access Tesla battery and energy storage products. The companies already collaborate on Terafab, a joint semiconductor manufacturing project.
## Key-man risk remains
Morningstar analyst David Sekera warned that a merged company would still carry huge key-man risk, with decision-making faster but fewer checks on Musk's control.

> One thing I don't think people talk enough about with SpaceX and Tesla as well: You do still have a huge amount of key-man risk here. God forbid anything were to happen to Elon Musk.
## Key takeaway

Elon Musk has publicly backed a potential merger of SpaceX and Tesla, with special committees now formally exploring the combination that could create a company worth around three point five trillion dollars.