Musk Proposes SpaceX-Tesla Merger to Help SpaceX Join S&P 500

Elon Musk has proposed merging SpaceX and Tesla to help SpaceX join the S&P 500, using Tesla’s current place in the index as part of the rationale.

The companies’ boards are discussing ownership structure, governance and a possible share exchange. Tesla is already a major S&P 500 constituent, giving its existing index membership a central role in the proposal.

Prediction-market pricing put the chance of an official merger announcement at 28.5% by Dec. 31, 45.5% by Feb. 1, 2027, 58% by March 1, 73% by July 1 and 84% by Jan. 1, 2028. Those figures concern the chance of an announcement by each deadline; they do not show that a merger has been agreed or will be completed.

No formal merger announcement has been made. Statements from SpaceX or Tesla, investor presentations, board committee activity or Securities and Exchange Commission filings could provide further indications on whether discussions are advancing.