Tesla, SpaceX Explore Merger Worth $3.5 Trillion, Target Deal Before Trump's Term Ends

Elon Musk confirmed this week that Tesla and SpaceX are exploring a merger, a combination worth roughly $3.5 trillion that could rank as the largest ever. The goal is to complete the deal before U.S. President Donald Trump's term ends in January 2029, according to Bloomberg, which reported the companies aim to announce terms in the first half of 2027. Musk said both firms have formed committees of independent board members to study a combination, calling it "a good idea" on SpaceX's earnings call Tuesday. SpaceX posted its first quarterly profit since listing, earning $4.4 billion on revenue up 161%, but capital spending reached $19.6 billion, mostly on AI. Tesla, reporting a day later, said net profit fell 43% to $787 million on flat revenue of $28 billion as deliveries slipped 2%. Any deal would need approval from more than half of all Tesla shares, a threshold Musk called "quite a high hurdle." He cautioned a merger is not certain. Tesla shareholders meet on December 3.