Tesla and SpaceX Discuss Merger That Could Create $3.5 Trillion Company

Elon Musk confirmed Tesla and SpaceX are discussing a possible merger that could put their combined valuation at about $3.5 trillion. Neither company has announced a final deal.

Both companies have formed special committees to examine the proposal. Musk is excluded from those committees as a conflicted party. Any merger would require approval from a majority of Tesla shareholders.

The $3.5 trillion figure refers to a prospective combined valuation; it does not describe a completed merger. The committees are still examining the proposal.

Prediction-market odds on Oct. 25 showed different probabilities for an announcement depending on the deadline. The chance of an announcement by Dec. 31 was 12.5%, down from 29% one week earlier. A contract for Jan. 1, 2028, was at 62.5%; contracts for Feb. 1, March 1 and July 1, 2027, were at 23.5%, 28.5% and 58%, respectively. These odds concern announcements by stated dates and do not constitute a decision by either company.