The key facts

  • Tesla and SpaceX may announce a merger in December 2026, with a postponement to early 2027 not ruled out
  • SpaceX's valuation has reached $1.9 trillion, while Tesla's market capitalization exceeds $1.5 trillion
  • The main obstacle is Tesla's manufacturing in China given SpaceX's status as a US defense contractor

Merger talks enter the final stage

Tesla and SpaceX are preparing to announce a merger in December 2026, Bloomberg reports citing sources familiar with the situation. According to the agency, the companies' boards of directors are negotiating the terms of the merger and the governance structure of the future corporation, and are also discussing how many SpaceX shares Tesla shareholders will receive. At the same time, the possibility of postponing the deal to early 2027 is being considered.

The largest deal in history

Bloomberg suggests that the merger of Elon Musk's two companies could become the largest corporate deal in history. SpaceX's valuation, according to CompaniesMarketCap, has reached $1.9 trillion, while Tesla's market capitalization exceeds $1.5 trillion. The combined conglomerate, as experts expect, will produce electric vehicles, batteries, rockets and satellites, and will also develop artificial intelligence infrastructure. One of the main goals of the deal, Bloomberg says, is expanding the use of AI in the space industry, autonomous transport and robotics.

What is already known about Musk's plans

The companies already cooperate: they plan to invest $16.8 billion in building a Terafab chip plant in Texas — for the Optimus robots, Cybercab robotaxis, Tesla's autopilot systems and space infrastructure projects. In October, Musk, in a dialogue with investors, called the combination of SpaceX and Tesla 'a good idea' and said that the boards of directors of both companies would create special committees to discuss merger plans.

The China factor

Bloomberg considers Tesla's operations in China, where the automaker has significant production capacity, to be the main obstacle to the deal — against the backdrop of SpaceX being a major defense contractor for the US government. In the summer of 2026, media reported that Tesla was considering selling its Chinese business or spinning it off into a separate company to prepare for the merger. There is still no final decision on the timing and terms of the deal: the December announcement remains a plan that may be postponed.