# Tesla and SpaceX in merger talks worth $3.5 trillion

> Elon Musk says the two companies have formed special committees to explore a combination, though he cannot participate due to conflicts of interest.
- Title: Tesla and SpaceX in merger talks worth $3.5 trillion · Fortune
- Summary: Elon Musk says the two companies have formed special committees to explore a combination, though he cannot participate due to conflicts of interest. Tesla…
- Keywords: tesla, spacex, elon musk, merger, special committees, spacex ipo, talks, worth, trillion, Fortune
- Source: Fortune — https://fortune.com/2026/10/20/elon-musk-tesla-and-spacex-weighing-merger
- Author: Amanda Gerut
- Read time: 1 min
- Topics: tesla, spacex, elon musk, merger, special committees, spacex ipo
## Merger talks confirmed
Tesla and SpaceX have formed special committees of independent board members to explore a possible merger, Elon Musk told investors during SpaceX's third-quarter earnings call Tuesday.
## Musk excluded from talks
Musk cannot participate in the special committee discussions because he is a conflicted party, owning roughly twenty percent of Tesla and forty-five percent of SpaceX.

> This is definitely the kind of question where I feel like I'm tap dancing through a minefield.
## Market reaction
Tesla stock rose just over one percent in after-hours trading, while SpaceX rose above five percent following the earnings call with Wall Street analysts.
## No deal yet
The committees have not reached any agreement on merger terms, and there is no guarantee they will. Musk cautioned against assuming a merger is certain.

> some people out there assume that a SpaceX and Tesla merger is a certainty, and I think that would be overstating it.
## Potential synergies
Musk cited collaboration opportunities in AI software, chip design, robotics, and connectivity, plus the planned Terafab chip plant being developed jointly by both companies.
## Valuation and hurdles
At Tuesday's closing prices, a combined Tesla-SpaceX would be worth about three point five trillion dollars, with SpaceX at about two trillion and Tesla at nearly one point five trillion.
## SpaceX reports strong earnings
SpaceX reported its first operating profit since its June IPO, with third-quarter revenues rising one hundred sixty-one percent to fourteen point fifty-eight billion dollars, and net income of four point four billion dollars.
## Key takeaway

Tesla and SpaceX have formed independent board committees to explore a merger valued at three point five trillion dollars, with no guarantee of a deal.