SpaceX and Tesla merger talks are gaining momentum with Bloomberg News reporting that the deal could yield the largest corporate acquisition in history by next month. The latest reports suggest the merger could be officially announced by December 2026, representing a significant step forward from earlier timeline discussions. This development comes as both companies have formed independent special committees to evaluate the potential combination, though no definitive terms have been agreed upon. As per recent market reports, the news has influenced sentiment with significant interest in prediction markets related to a potential merger announcement. However, Musk has cautioned that a merger is not guaranteed, noting that treating it as done would be overstating the likelihood.
As of the latest reporting, SpaceX has a market cap of approximately ₹1.90 trillion while Tesla is valued at around ₹1.55 trillion. The combined entity would be valued at approximately ₹3.5 trillion, which would make it the largest corporate deal ever recorded. However, no terms have been signed, and the deal could still slip into 2027. The merger discussions involve Tesla stock trading at ₹393.65 and SpaceX at ₹140.33 as of the latest reporting. A Barclays analysis cited in multiple outlets pegged the combined market value based on October 14, 2026 valuations at roughly ₹3.5 trillion to ₹3.6 trillion. Musk last month called the proposed merger a 'good idea', unifying his AI, robotics, EV and aerospace ambitions under a single corporate roof.
Bank of America analyst Alexander Perry expects SpaceX to acquire Tesla through stock rather than cash. At a 20% premium, Perry estimates Tesla holders would own approximately 47% of the combined company using October 2025 prices. Currently, one Tesla share equals about 2.8 SpaceX shares before any premium. Elon Musk would maintain control regardless of the structure, with Barclays estimating he would hold about 56% of the combined voting power. Musk has cautioned that nothing is guaranteed, noting that a Tesla shareholder vote would require support from 50% of all outstanding shares — a threshold he himself called 'quite high.'
The merger faces significant regulatory hurdles, particularly regarding Tesla's charter requirements. Tesla's bylaws mandate a majority of all outstanding shares for approval, meaning investors who abstain count as 'no' votes. In 2025, this rule prevented a non-binding proposal on Tesla investing in xAI, despite receiving more votes for than against, due to 473 million abstentions. Musk has cautioned against assuming the deal is certain, stating that treating it as done would be overstating the likelihood. The regulatory challenges are compounded by the fact that Musk holds controlling stakes in both companies and sits on both boards, requiring him to recuse himself from committee discussions.
The two companies are already commercially entangled beyond the proposed merger. Tesla's SEC filings disclose a ₹2 billion equity investment in SpaceX and ₹405 million in Megapack revenue from SpaceX purchases during the first half of 2026. Tesla, SpaceX, and xAI are also co-investors in the Terafab semiconductor project, which is targeting test chip production in May-June 2027 and volume output by Q3 2028. Musk publicly confirmed the merger process on October 20, 2026, when both companies formed special committees of independent directors to evaluate a possible combination. He framed the logic around synergies between the two businesses: shared AI software, chip design, robotics, mass-to-orbit launch capacity, and Starlink connectivity for Tesla vehicles.
