Tesla stock rises as Musk announces committees exploring SpaceX merger

Tesla shares increased on Tuesday after chief executive Elon Musk revealed that Tesla and SpaceX are in preliminary discussions about a potential merger. Reporting from MarketWatch, Fortune, and The Verge confirms that both companies have established special committees of independent board members to assess a transaction. Speaking during SpaceX's third-quarter earnings call on Tuesday, Musk noted that any combination remains uncertain. [1][2][3][6]

Fortune reported that the potential combination could create a combined entity valued at $3.5 trillion. Musk explained on the earnings call that the special committees were formed at the request of shareholders to discuss the merger. Because he serves as chief executive of both entities and is a conflicted party, Musk stated that he is excluded from the negotiations and cannot participate in the formal discussions. [3][6]

Musk is the chief executive officer and largest shareholder of both Tesla and SpaceX. Forbes estimates his net worth at $1.1 trillion as of October 2026. As FTMQ Business reported earlier, the two companies have previously collaborated on technical projects, including a Tesla Roadster prototype developed alongside SpaceX that featured air thrusters. [13][17]

The potential transaction follows growing investor questions regarding AI spending ambitions across Musk's business empire, as reported by Reuters. Investing.com noted that SpaceX investors had pressed Musk on a possible Tesla merger ahead of the third-quarter financial results. [7][11]