Daily newsletter · Thu 22 Oct 2026
Musk says SpaceX and Tesla are weighing a merger, and SpaceX rose 7.79%
SpaceX closed Wednesday at US$159.31, up 7.79%. Tesla rose 3.41% to US$386.47. Both moves came from the same remark, made on SpaceX's results call on Tuesday evening in New York.
So what did Musk actually say? He told investors that the boards of both companies have set up special committees of independent directors to look at combining them. Asked whether it would be a good idea, he said yes, but added that shareholders would have to support it.
Musk sits on both sides of any deal, so he cannot take part in the talks. He owns about 48% of SpaceX, counting restricted shares, and about a fifth of Tesla. The committees have not agreed on any terms.
The size is hard to picture. SpaceX is worth about US$2.16 trillion and Tesla about US$1.53 trillion. Together they would be worth more than US$3.6 trillion.
Tesla reported its own results after Wednesday's close. Revenue was US$28.05 billion, flat on a year earlier, and adjusted earnings of 48 US cents a share beat the 45 cents expected. The operating margin was just 2.6%, and the shares edged higher after hours.
what Tesla shareholders would be swapping into. Today they own a carmaker with a robotaxi project attached. After a merger they would own a slice of rockets, Starlink and an AI business. Tesla must hold its annual meeting by 6 December, the earliest obvious place for a vote.
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General information and commentary only, not financial advice. It does not take account of your objectives, financial situation or needs, and reflects the author's own reading of public information at the time of writing, which may be wrong. Sharespective, its people and its clients may hold positions in the companies covered. Do your own research and talk to a licensed adviser.