Elon Musk considers merger between Tesla and SpaceX

Special committees have been established at both Tesla and SpaceX to assess a possible merger between the two companies, BBC News Science, NBC News, and Fortune reported. Elon Musk stated during a SpaceX financial analyst call on Tuesday that he considers the combination a good idea and that it is under active consideration. While Musk expressed support for the transaction, he noted that certainty should not be assumed and shareholder approval would be required, according to BBC News Science. [1][6][7]

The special committees have not yet reached an agreement on transaction terms, and there is no guarantee that a deal will materialize, BBC News Science reported. Fortune reported that the discussions involve a potential 3.5 trillion dollar merger, while RenewEconomy noted speculation surrounding a multi-trillion-dollar valuation for the combined entity. [1][2][6]

The proposed merger comes alongside reports on the environmental footprint of SpaceX operations. RenewEconomy reported that new analysis indicates Musk's plans for 30 SpaceX launches per day would burn 11 million tonnes of gas annually. This volume of gas combustion would generate emissions nearly equivalent to the emissions displaced by electric vehicles manufactured by Tesla. Additionally, Musk is investing in gas production and pipelines to power data centers and supply Starship launches, RenewEconomy said. [2]

Musk serves as the chief executive officer and largest shareholder of both Tesla and SpaceX. Forbes estimates his net worth at 1.1 trillion dollars. As FTMQ Climate reported earlier, Musk contributed 276 million dollars to Republican political groups during the 2026 United States midterm election cycle, making him the largest individual donor. Tesla previously requested that Musk halt political donations after campaign positions against electric vehicles created financial headwinds for the company. [8][9]