{"id":655437,"date":"2026-10-24T04:18:19","date_gmt":"2026-10-24T04:18:19","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/655437\/"},"modified":"2026-10-24T04:18:19","modified_gmt":"2026-10-24T04:18:19","slug":"elon-musk-says-a-spacex-tesla-merger-is-a-good-idea-heres-what-stands-in-the-way","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/655437\/","title":{"rendered":"Elon Musk Says a SpaceX-Tesla Merger Is a \u201cGood Idea.\u201d Here\u2019s What Stands in the Way."},"content":{"rendered":"

It’s no secret that a merger between Space Exploration Technologies Corp (SPCX<\/a> +1.89%) and Tesla could be in the works.<\/p>\n

The prediction markets platform Kalshi places the odds of such a tie-up happening before next May at 59%, as of this writing.<\/p>\n

On SpaceX’s most recent earnings call, SpaceX and Tesla’s Founder and CEO Elon Musk added fuel to the fire by saying, “Do I think it would be a good idea? Yes,” when discussing the idea. Musk added that both companies have created special committees to explore such a transaction.<\/p>\n

But a merger<\/a> between two such massive companies is bound to be complex and likely to face several obstacles. Here’s what stands in the way.<\/p>\n

\"Smiling<\/p>\n

Image source: The White House.<\/p>\n

Deal approval is not guaranteed, and there could be regulatory challenges<\/p>\n

What makes a SpaceX-Tesla merger unique is that it involves two of the largest companies in the world by market cap, with the same CEO who also holds a significant stake in both.<\/p>\n

At SpaceX, which has a market cap of $2 trillion, Musk pretty much controls all of the voting power. The company has both Class A and Class B shares of common stock. Musk owns most of the Class B shares. Collectively, Musk controls roughly 85% of the voting power.<\/p>\n

SPCX<\/a> – Space Exploration Technologies<\/p>\n

$147.49+$2.74 (+1.89%)<\/p>\n

NASDAQ \u00b7 As of 4:00 PM ET 10\/23\/26<\/p>\n

It’s a different story at Tesla, where there are not two separate share classes, and Musk owns about 19.8% of the outstanding shares, according to the company’s latest proxy report.<\/p>\n

A recent regulatory filing from SpaceX said a merger would require approval by a special committee, the board of directors, and Musk, who has recused himself from negotiations due to a conflict of interest.<\/p>\n

“… At the end of the day, the shareholders have to be supportive of this. And particularly on the Tesla side, we will need a 50% vote of all shares, not just those who vote, but of all shareholders,” Musk said on SpaceX’s earnings call. “And that’s quite a high hurdle to try to achieve. So, and I can just say at this point, that the special committees have not reached agreement on the terms of any transaction.”<\/p>\n

If they were to agree, a SpaceX-Tesla merger could face regulatory issues. The combined entity will have many businesses under one roof, particularly in artificial intelligence<\/a>.<\/p>\n

$372.22-$2.36 (-0.63%)<\/p>\n

NASDAQ \u00b7 As of 4:00 PM ET 10\/23\/26<\/p>\n

\u2033Antitrust scrutiny, national security considerations (given SpaceX’s military contracts), and cross-border regulatory reviews all present significant challenges,” Counterpoint Research Analyst Kevin Li wrote in an email sent to CNBC.<\/p>\n

Musk has also not made many friends among Democratic politicians lately, having spent roughly $445 million through super PACs this election cycle to support GOP candidates. Kalshi predicts Democrats will reclaim both the U.S. Senate and House of Representatives in the upcoming midterm elections.<\/p>\n

Deal likely won’t result in huge premium<\/p>\n

Gary Black, a managing partner at the Future Fund, recently wrote on X that he expects SpaceX to offer $420 per share for Tesla in an all-stock deal, implying only about 13% upside from current levels.<\/p>\n

Black doesn’t expect the deal to “… be as compelling” due to the “massive dilution and all-equity economics.”<\/p>\n

Ultimately, a SpaceX-Tesla deal may make sense, as both companies are focusing on AI at this point. Musk has previously said he expects robotics to be a huge component of SpaceX down the line, and Tesla is beginning production of its Optimus humanoid robots.<\/p>\n

SpaceX<\/a> and Tesla are also already collaborating on several projects, whether it’s Tesla’s new Roadster or SpaceX’s Terafab facility.<\/p>\n

But the deal is by no means guaranteed to go through for the reasons mentioned above. Even if it does, it’s unlikely to lead to a huge premium on Tesla stock. The market is already aware there’s a high likelihood of a deal being announced, so some of that is likely already priced into Tesla’s stock price.<\/p>\n","protected":false},"excerpt":{"rendered":"It’s no secret that a merger between Space Exploration Technologies Corp (SPCX +1.89%) and Tesla could be in…\n","protected":false},"author":2,"featured_media":655438,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,85,46],"class_list":["post-655437","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/655437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=655437"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/655437\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/655438"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=655437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=655437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=655437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}