Tesla, SpaceX Form Special Committees to Explore Near-$5 Trillion Merger, Musk Says

Elon Musk said Tesla and SpaceX have formed special committees of independent directors to explore a merger he values at close to $5 trillion, potentially the largest deal in corporate history. Tesla shares rose 3.8% to $387.72 and SpaceX shares jumped 9.9% to $162.41 in morning trading Tuesday. SpaceX is valued at $1.98 trillion and Tesla at about $1.5 trillion. Yorkville Ives & Co. analyst Dan Ives said Tesla holders would likely demand $500 to $550 per share for approval, implying a combined value rivaling Nvidia at $5.2 trillion and Apple at $4.95 trillion. Musk cited cooperation on superintelligence software, chip design, robotics and the Starmind satellite constellation as rationale. SpaceX owns xAI, and Musk's planned Terafab chip factory would supply both companies. Musk cautioned that a deal is not assured, noting Tesla requires approval from 50% of all outstanding shares, not just those voted. Ives puts the odds of completion by the end of 2027 at 80% to 90%.