SpaceX and Tesla are progressing in their merger negotiations and could announce what would be the biggest-ever deal as soon as December, Bloomberg News reported on 12 November, citing people familiar with the matter. At Thursday’s closing prices the two companies were worth about $3.47 trillion together, 2.8 times the $1.25 trillion SpaceX-xAI combination that CNBC called the largest merger of all time, by our arithmetic.
Tesla alone, at about $1.57 trillion, is worth more than that whole record deal. Neither company has confirmed the talks or announced terms.
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The key insight: As we read the reports, the news is the timetable: Bloomberg says an announcement could come as soon as December, with early 2027 also discussed, for a pair worth about $3.47 trillion at Thursday’s close by our arithmetic.
Bloomberg’s story, by Ryan Gould, Siddharth Philip and Dinesh Nair, is timestamped 8:09 p.m. UTC. It says the progress is “setting the stage for a combination that could redefine the limits of global dealmaking”. Only its opening paragraphs were available to us; the rest is behind a paywall.
Reuters, relaying the report, added that the companies have also discussed a scenario in which the announcement slips into early 2027. Reuters said SpaceX and Tesla could not be immediately reached for comment. CNBC carried the report as SpaceX and Tesla advancing merger talks toward a potentially record-breaking deal.
The reports give no exchange ratio, price, structure or adviser names in the text we could read. Musk said last month that a merger was a good idea but that it was up to the companies’ special committees, as we reported.
SpaceX and Tesla market value at the 12 November close, alone and combined, against the $1.25 trillion SpaceX-xAI deal that CNBC called the largest merger of all time. Market values and the 2.8x are our arithmetic.
What Tesla Has Filed
Tesla’s 10-Q for the third quarter, filed on 22 October, says its board “has formed a special committee” of disinterested directors “to explore deepening Tesla’s relationship with SpaceX”, which could include a business combination.
The filing adds that “there is no assurance that any such Transaction will be consummated”. A deal would need the committee’s affirmative recommendation and, if agreed, any necessary shareholder approval.
The two companies already trade with each other. Tesla recognized $626 million of revenue from SpaceX’s Megapack purchases in the first nine months of 2026, and invested $2.00 billion in SpaceX common stock in March for an ownership interest of less than 1%, the 10-Q says.
The Size, by Our Arithmetic
Tesla closed at $397.45. On the 3,952,757,946 shares in its 10-Q, that is about $1.571 trillion. SpaceX’s Class A shares closed at $139.94. Priced across 13,581,063,709 Class A and Class B shares, as in our earlier piece, SpaceX is worth about $1.901 trillion.
Together that is about $3.47 trillion. CNBC reported in February that the SpaceX-xAI deal was the largest merger of all time, valuing SpaceX at $1 trillion and xAI at $250 billion, $1.25 trillion combined. The SpaceX-Tesla pair is 2.8 times that; Tesla alone is 6.3 times what xAI was valued at in that deal.
How the Shares Moved
Tesla traded at $390.08 at 20:05 UTC, four minutes before Bloomberg’s timestamp, and closed at $397.45, up 1.9%, about $29 billion of market value on the 10-Q share count, by our arithmetic. It finished the day up 1.7%.
SpaceX’s Class A shares went the other way after the report, from $141.42 at 20:05 UTC to a $139.94 close, down 1.0%. They ended the day up 0.1%. Yahoo Finance chart data is the source for all prices.
The two stocks have swung together before: they lost $450.3 billion of combined market value between the 3 and 5 November closes, as we reported. Earlier on Thursday SpaceX was reported to be planning $74 billion in AI compute.
The Structural Read
As we read the share moves, Tesla rose 1.9% after the report while SpaceX’s Class A shares fell 1.0%, by our arithmetic from Yahoo Finance data.
As we read Tesla’s 10-Q, any deal still needs its special committee’s recommendation and, if agreed, shareholder approval.
Tesla, Form 10-Q, filed 22 October 2026
“there is no assurance that any such Transaction will be consummated”
Three Implications
FOR TESLA SHAREHOLDERS The 10-Q says a deal would need the special committee’s affirmative recommendation and any necessary shareholder approval.
FOR SPACEX SHAREHOLDERS The reports name no ratio, price or structure; the companies have not commented on them.
FOR OUR COVERAGE We will report any filing or company statement that confirms, sets terms for or ends the talks.
The framework says: “This entire ecosystem has been shaped by constraints, bottlenecks, chokepoints, and scarcity at every layer.”
As we read the filings, the two companies already meet at more than one layer: Tesla sells SpaceX Megapacks for power and holds SpaceX stock, while SpaceX is building AI compute. The framework predates the talks and does not discuss SpaceX or Tesla.
What Is Not Established
Neither report we read says which company would be the acquirer, at what ratio, or whether the deal would be all stock. We have not seen an 8-K or a statement from either company on the talks since the 10-Q. How a deal would treat Musk’s stock awards is a separate question we covered in October.
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SpaceX and Tesla are progressing in merger talks and could announce a deal as soon as December, Bloomberg reported, with early 2027 also discussed. At Thursday’s close the pair was worth about $3.47 trillion, 2.8 times the $1.25 trillion SpaceX-xAI record, by our arithmetic.
A note on sourcing. The talks are as reported by Bloomberg News (opening paragraphs read; the rest is paywalled) and relayed in full by Reuters, citing people familiar with the matter; neither company has confirmed them. Filing details come from Tesla’s 10-Q, the record deal value from CNBC, prices from Yahoo Finance chart data. Market values and ratios are our arithmetic.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
