Elon Musk Says Tesla-SpaceX Merger Is a “Good Idea” as Companies Form Special Committees

Elon Musk has expressed support for a potential merger between Tesla and SpaceX, saying the combination would be “a good idea” as both companies establish special committees of independent directors to examine the proposal.

Speaking during a conference call with investors on Tuesday, October 20, 2026, Musk said the decision rests with the committees, which were formed at shareholders’ request. Any merger would ultimately require shareholder approval.

Musk, who leads both companies, acknowledged that his position presents a conflict of interest and said he would not participate in the committees’ discussions.

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Musk outlined several areas where the companies could benefit from working together, including artificial intelligence, semiconductor development, robotics, and satellite connectivity.

“I do think there's a lot of merit to combining the companies as we are pretty much in the superintelligence singularity, and there's a lot to be gained from cooperating on developing superintelligence software, chip design, the Terafab obviously, robotics, mass-to-orbit with the Starmind constellation, connectivity,” Musk said.

The potential combination would bring together Tesla’s electric vehicle and robotics operations with SpaceX’s space and satellite businesses. However, Musk cautioned that it remains too early to determine whether the proposed merger will proceed.

Following SpaceX’s quarterly earnings report and Musk’s remarks during the investor call, the company’s shares rose as much as 8% in extended trading on Tuesday.

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Talk of a potential deal has intensified in recent weeks, with speculation centered on SpaceX acquiring Tesla. Barclays reportedly suggested that an announcement could come as early as December, ahead of Tesla’s annual meeting, according to Reuters.

Despite the growing speculation, no merger agreement has been reached, and Musk stressed that the outcome remains uncertain. The independent committees are responsible for evaluating the proposal, with shareholders ultimately required to approve a transaction.

The comments came as SpaceX reported its first profit as a publicly traded company on Tuesday. Musk also outlined an ambitious financial target, saying the company expects annual recurring revenue to reach between $500 billion and $1 trillion by the end of 2027.

Musk holds a substantial ownership stake and significant voting control in SpaceX, giving him considerable influence over the company.

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The merger discussion follows other major developments involving Musk’s companies. Earlier in the week, he pledged to give every child in the United States one share of SpaceX next year, suggesting the planned distribution could be the first of several.

Tesla has also attracted attention following the unveiling of its long-awaited Roadster during a showcase last week. The demonstration featured the electric sports car using compressed-air thrusters to launch off a ramp and perform a midair maneuver.

Although Musk has voiced support for bringing Tesla and SpaceX together, the companies’ independent committees must assess the proposal before any potential transaction can move forward.