Tesla, SpaceX Form Independent Panels to Weigh Merger as Musk Steps Aside

Tesla and SpaceX have each appointed special committees of independent directors to evaluate a potential combination of the two companies, a move that places the decision in the hands of board members rather than Elon Musk, who controls both enterprises. The committees were formed at the request of shareholders, Musk said Tuesday during a conference call following SpaceX’s first quarterly profit report as a public company.

“I’m a conflicted party, I can’t actually be in the discussions of the special committees,” Musk told investors. The disclosure marks the most concrete step yet toward a tie-up that has been speculated about for years, with Barclays analysts suggesting an announcement could arrive as early as December.

SpaceX shares rose as much as 8% in extended trading after the earnings release and Musk’s comments. The rocket and satellite company projected annual recurring revenue of $500 billion to $1 trillion by the end of 2027, a forecast that underscores the financial scale of any combined entity. Tesla shareholders would ultimately need to approve any merger, a process that could face scrutiny given Musk’s dominant voting position at both firms.

The governance structure is unusual. Musk owns a significant stake in SpaceX and retains substantial voting control, while also serving as CEO of Tesla. Any merger would require the independent committees to negotiate terms at arm’s length, then present a recommendation to their respective boards and shareholders. Musk said the rationale centers on converging technologies — artificial intelligence, chip design, robotics, and orbital connectivity through the Starlink constellation — which he described as approaching a “superintelligence singularity.”

The timeline remains uncertain. Musk cautioned it was too soon to know whether a deal would materialize. Meanwhile, he pledged this week to give every child in America one share of SpaceX next year, a distribution that would dramatically expand the shareholder base before any merger vote. Tesla last week unveiled its next-generation Roadster, demonstrating compressed-air thrusters that allow the vehicle to launch off a ramp and execute a midair maneuver — technology Musk has linked to SpaceX engineering.