TLDR
- Tesla and SpaceX are moving forward with merger talks.
- A deal could be announced as soon as December, or in early 2027.
- Boards and advisors are working on terms and governance.
- China operations and US defence contracts are possible hurdles.
- The two firms already share a chip venture called Terafab.
Tesla and SpaceX are moving forward with talks on a possible merger. A deal could be announced as soon as December, according to people familiar with the matter. The news was first reported on Thursday.
JUST IN: Elon Musk's SpaceX $SPCX and Tesla $TSLA could announce merger as early as December. pic.twitter.com/cHsqHoRdSd
— Watcher.Guru (@WatcherGuru) November 12, 2026
Bloomberg News reported the details, citing its sources. Those sources said the announcement could also slip into early 2027. The companies have discussed that scenario as well.
What the Reports Say About Timing
Boards of directors and advisors at both companies are now working out the terms. They are also deciding how the combined company would be governed. Those details are still being shaped.
Both companies have formed special committees of independent directors. The committees were set up to discuss a union between the two. Elon Musk confirmed this publicly.
Musk made the comments on SpaceX’s third-quarter earnings call last month. He said a merger with Tesla would be “a good idea.”
A merger would bring Musk’s work in artificial intelligence, robotics, electric vehicles and aerospace together. All of it would sit under a single corporate roof. The two companies are each valued at more than $1 trillion.
SpaceX had a market value of about $1.90 trillion at the last close. Tesla was valued at around $1.55 trillion. Added together, the two values come to about $3.45 trillion.
The timing of an announcement is not fixed. December is the earlier target, and early 2027 is the other option. Early 2027 remains possible if the talks run longer.
Hurdles and Existing Ties
The deal faces steep regulatory hurdles. One is SpaceX’s work on United States defence contracts. Another is Tesla’s operations in China.
SpaceX has a close relationship with the US government. That relationship could make Tesla’s China business an issue. The sources described this as a possible obstacle to a deal.
Tesla’s reliance on China is one of the main issues named in the report. The defence contracts at SpaceX are the other. Both are listed as obstacles to an agreement.
The two companies already work together on a chip joint venture called Terafab. Both take part in the project, which has its own schedule. The merger talks are a separate matter.
Terafab is meant to manufacture computer chips. Musk updated its schedule on the earnings call. He gave dates for both testing and volume production.
The first test chip should be produced around May or June of next year. Musk gave that timeline on the call. The test chip is the first output the venture is expected to deliver.
The venture aims to reach volume production by the third quarter of 2028. That goal is more than a year after the planned test chip. Musk shared both targets on the same call.
Tesla and SpaceX could not be immediately reached for comment on the report. Talks are said to be progressing, with December the earliest expected announcement date.
