A SpaceX-Tesla Merger? Why Elon Musk Thinks It’s a Good Idea

Explainer Will SpaceX and Tesla Merge? Why Musk Thinks It’s a Good Idea A decade ago, Elon Musk saw little reason for SpaceX and Tesla Inc. to merge, saying that the ties between the two firms were “really quite tenuous.” Fast forward to 2026 and he’s now openly endorsing the idea, believing “there’s a lot of merit to combining the companies.” Musk announced on Oct. 20 that SpaceX and Tesla have formed special committees of independent directors to discuss the possibility of a merger. He said they haven’t yet reached an agreement on the terms of a deal and he’s not involved in the discussions because he’s a “conflicted party.” The world’s richest man is the chief executive officer of both businesses, as well as a major shareholder, meaning he’s on both sides of a potential transaction.