Elon Musk says Tesla and SpaceX are weighing a $3.5 trillion merger—without him in the room

Summary: Tesla and SpaceX have established independent board committees to consider combining the two Elon Musk-led companies.

Tesla and SpaceX are discussing a possible merger, marking a significant development involving two of the most prominent companies associated with Elon Musk. Musk disclosed the talks to investors during SpaceX’s third-quarter earnings call on Tuesday.

Independent committees lead review

Independent board members at both companies have formed special committees to assess the potential transaction. The structure places the review with directors serving on the two boards rather than with Musk directly, as the companies examine the proposal without him in the room.

The possible deal has been described as worth $3.5 trillion in the headline reporting the announcement. However, the information provided does not include terms, a proposed timetable or confirmation that the boards will approve the transaction.

What the talks mean

The discussions put the governance of Tesla and SpaceX at the center of attention. Any decision would involve separate board committees evaluating a combination between the electric-vehicle maker and the space company.

For now, the companies remain in the discussion stage. The formation of the committees signals that the proposal is receiving formal consideration, but it does not establish that a merger will take place.

Next steps remain unclear

The companies’ special committees will determine how the review develops. No further outcome or timing was provided in the available information.