TLDR
- SpaceX says a possible merger with Tesla would need approval from Elon Musk, even though he has stepped away from the talks.
- Special committees at both companies are exploring a deal, but no decision has been made.
- SpaceX reported Q3 revenue of $14.58 billion and adjusted earnings of $0.45 per share, well above analyst estimates.
- Musk said a merger would need approval votes equal to 50% of Tesla’s total share count.
- Some insiders worry his public comments could delay the process by several weeks.
SpaceX said on Thursday that a possible merger with Tesla would need approval from Elon Musk, its controlling shareholder. Musk has recused himself from talks between the two companies because of conflicts of interest.
Elon Musk today on a potential merger between SpaceX and Tesla:
"Both Tesla and SpaceX have formed special committees at the request of shareholders. Because I'm a conflicted party I can't be in on these discussions. I don't think we should assume that a merger is a certainty.… pic.twitter.com/Aerc1PxA8P
— Sawyer Merritt (@SawyerMerritt) October 20, 2026
The statement came in a regulatory filing. SpaceX said no decision has been made by its special committee. Any deal would also need approval from the committee, the board of directors and the controlling shareholder.
What Musk said about the merger
Musk said on Tuesday that a merger would be “a good idea.” He confirmed that special committees had been formed at both companies to discuss a possible union.
He spoke during SpaceX’s third-quarter earnings call. He said there is a lot to gain from working together on software, chip design, robotics and sending mass to orbit.
Musk also said a deal is not guaranteed. He said winning shareholder approval would be a hurdle. A merger would need votes equal to 50% of Tesla’s total share count, not just those who vote.
Musk owns nearly a fifth of Tesla and holds voting control at SpaceX. Analysts say a merger would give him control of the combined company.
Several Wall Street analysts see a deal as a matter of when, not if. They disagree on how much Tesla shareholders should receive. The potential merger is valued at $3.5 trillion.
Reuters reported that Musk’s public support has rattled some insiders. They worry his comments could invite shareholder scrutiny and delay talks by several weeks. One person with knowledge of the talks called it a “mess.”
SpaceX’s third-quarter results
SpaceX reported adjusted earnings of $0.45 per share on sales of $14.58 billion. Analysts had expected $0.13 per share on revenue of $12.72 billion.
Revenue rose 161% from a year earlier. Net income was $4.4 billion, compared with a loss of $1.1 billion a year ago. Operating income was $2.8 billion.
Starlink connectivity sales rose 69% to $5.25 billion. The superintelligence segment grew about 830% to $7.56 billion. The space segment rose about 6% to $1.77 billion.
SpaceX expects first-quarter 2027 sales of $33 billion to $37 billion. Musk said he expects annual recurring revenue of $500 billion to $1 trillion by the end of next year.
Tesla cut its annual capital spending forecast to about $20 billion on Wednesday. It had previously forecast more than $25 billion. SpaceX expects $35 billion to $40 billion in fourth-quarter capital spending.
On Thursday, SpaceX shares closed down 9.14% at $144.75, giving it a market value of $1.94 trillion. Tesla fell 3.08% to $374.58. In extended trading, SpaceX rose about 1% and Tesla fell slightly.
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