Musk says Tesla and SpaceX form independent committees to explore merger, requiring 50% shareholder vote

Elon Musk stated during SpaceX's Tuesday earnings call that both Tesla and SpaceX have created special committees of independent directors to discuss a potential merger. This represents the most detailed update investors have received regarding the idea of a tie-up, which has been the subject of much chatter since SpaceX went public earlier this year.

Musk, who helms both companies and owns billions of dollars in stock of each, said he cannot be part of those exploratory groups. "Do I think it would be a good idea? Yes," he said on the call. "But at the end of the day, the shareholders have to be supportive of this, and particularly on the Tesla side, we will need a 50% vote of all shares, not just those who vote, but of all shareholders." He described clearing that bar as "quite a high hurdle."

While Musk sees clear benefits in combining the companies, citing their collaboration on AI software, chip design, manufacturing, robotics, and Starlink connectivity, he cautioned investors against assuming the outcome. "I don't think we should necessarily assume that a SpaceX and Tesla merger is a certainty," he added. "That would be overstating it." If the companies ultimately decide to merge, it would further consolidate Musk's business empire, often referred to as 'Musk Inc.' Previous consolidations within the empire include xAI's acquisition of X in 2025 and SpaceX's acquisition of xAI in February.