The boards of SpaceX and Tesla have each formed special committees of independent directors to explore a potential merger, a development that could rank as the largest corporate combination ever attempted. The disclosure came from the CEO of both companies on SpaceX's third-quarter earnings call on October 20, when he confirmed the committees had been created at the request of shareholders, though he emphasized that no terms had been agreed and no deal was guaranteed.

Because he leads both companies and controls significant voting power at each, he is classified as a conflicted party under securities regulations and has been formally excluded from both committees' discussions. At the time of the announcement, Tesla carried a market capitalization of roughly $1.48 trillion while SpaceX was valued at approximately $2.01 trillion — meaning a combined entity would far surpass any previous merger in corporate history.

The strategic logic centers on deepening collaboration the companies have already begun in chips and artificial intelligence. Supporters argue that combining SpaceX's launch infrastructure, satellite network, and aerospace expertise with Tesla's robotics, energy, and automotive operations could produce compounding advantages in the race toward physical AI and autonomous systems. Critics, however, note the profound governance complexity: any deal would require a shareholder vote at both companies, with Tesla's public shareholders facing particular scrutiny given their CEO's dual role.

Wall Street reacted with a mix of excitement and caution. One prominent analyst placed the probability of a completed merger within two years at 95%, while governance experts stressed that the Tesla special committee carries a unique fiduciary burden. SpaceX shares rose roughly 8% in extended trading on the earnings call, while the company separately reported 161% revenue growth for the third quarter, with its AI business growing ninefold.