---
title: "Tesla and SpaceX Form Merger Review Committees"
canonical: "https://thestockmemo.com/article/tesla-and-spacex-form-merger-review-committees"
markdown: "https://thestockmemo.com/article/tesla-and-spacex-form-merger-review-committees.md"
type: article
published: "2026-10-21T08:43:49.919089+00:00"
updated: "2026-10-21T08:43:49.919089+00:00"
company: "Tesla Inc"
ticker: "TSLA"
isin: "US88160R1014"
price_as_of: "2026-10-27T08:00:25.382+00:00"
image: "https://thestockmemo.com/media/98a1a786-5650-40ac-99d8-05abc1e97789.png"
tags:
  - "Automotive"
  - "Earnings"
  - "United States"
---

# Tesla and SpaceX Form Merger Review Committees

> Elon Musk said the companies' special committees have not reached an agreement on any transaction terms.

Tesla and SpaceX have formed special committees to discuss a potential merger, Elon Musk said on October 20, 2026, adding that no agreement on terms has been reached and there is no guarantee one will be. Musk said the committees were created at shareholders' request.

## Key figures

| Field | Value |
| --- | --- |
| Company | Tesla Inc |
| Ticker | TSLA · NASDAQ |
| ISIN | US88160R1014 |
| Sector | Automotive |
| Price | $391.62 |
| Price target | $407.22 |
| Upside | +4.0% |
| Fair Value | $475.00 |
| Rating | Hold |
| Sentiment | Neutral |

## What happened

Tesla Inc (NASDAQ: TSLA) and SpaceX have formed special committees to discuss a potential merger, Elon Musk said on October 20, 2026. Musk said the committees were created at the request of shareholders. He is CEO and the largest individual shareholder of both companies. "The special committees have not reached an agreement on the terms of any transaction, and there is no guarantee that they will," Musk said on SpaceX's quarterly earnings call. The talks appear to be at an early stage.

## Why it matters

Elon Musk can't take part in the special committee talks because he's a conflicted party. "It's an odd kabuki dance where two groups of people are talking, and I can't be in the conversation," he said on SpaceX's third-quarter earnings call.

A merger would need approval from 50% of all Tesla shareholders, not just those who vote, Musk said. At SpaceX, he holds more than 50% voting power following its IPO, which would make support from SpaceX shareholders easier to secure. We think that makes the Tesla vote the bigger test for any deal.

Musk said he sees "a lot of merit to combining the companies as we are pretty much in the superintelligence singularity." He pointed to cooperation on AI software, robotics, SpaceX's orbital AI data center project Starmind, and Terafab, the joint chip manufacturing project between Tesla and SpaceX.

## By the numbers

- SpaceX has a market capitalization, the total value of its shares, of more than $2 trillion, while Tesla's market capitalization is nearly $1.5 trillion.
- By that measure, SpaceX is the larger company.
- Tesla shares stood at $374.40 as of October 20, 2026.

## What to watch

Tesla filed a definitive proxy statement for its 2026 Annual Meeting of Shareholders with the SEC on October 19, 2026.

Tesla has also adopted a Voluntary Retail Voting Program.

---

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Source: https://thestockmemo.com/article/tesla-and-spacex-form-merger-review-committees