The SpaceX-Tesla merger would be worth about US$3.5 trillion, making it the largest corporate deal in history. Musk cautioned that the deal is not certain, but analysts largely expect it to happen.
What Is the SpaceX-Tesla Merger Worth, and Who Is Involved?
- SpaceX: Founded in 2002, valued at about US$2 trillion after a record listing this year.
- Tesla: Founded in 2003, valued at about US$1.5 trillion, with Musk as chief executive since 2008.
SpaceX absorbed xAI in February, bringing in the Grok chatbot. xAI had taken over the social network X in 2025.
Much of SpaceX’s recent growth comes from renting data centre computing power to other AI companies. Tesla’s core car business has come under pressure, so Musk increasingly presents it as a company built around robotaxis and its Optimus humanoid robot.
Why Does Musk’s Voting Power Matter for the SpaceX-Tesla Merger?
Musk holds about 82% of SpaceX’s voting power but only about 20% at Tesla. His moves at Tesla have drawn scrutiny and lawsuits from investors.
CFRA Research wrote that synergies would likely be small relative to the size of the deal. In its view, the deal would mostly be about control.
Florian Frischmuth of engineering consultancy Envorso said a combined group could centrally control chips, energy and connectivity, the key ingredients of AI.
How Many Tesla Shares Does the SpaceX-Tesla Merger Need?
Approval needs a majority of all Tesla shares. CFRA Research’s Garrett Nelson noted that loyal retail investors hold an estimated 25% to 27% of Tesla shares.
With Musk’s stake added, only a small portion of institutional investors would need to back the deal.
Yorkville Ives’ Dan Ives put the odds at 90% by early 2027. He said Tesla would likely need to be valued at more than US$500 per share to win approval.
What Are the Biggest Obstacles to the SpaceX-Tesla Merger?
Ann Lipton, a law professor at the University of Colorado, said both companies moved their incorporation from Delaware to Texas. That move makes the legal obstacles appear slight.
In Texas, shareholders challenging a deal must first show fraud or intentional misconduct. Companies can also require certain suits be brought only by holders of 3% of the stock, which is about US$60 billion at SpaceX.
Lipton said the bigger risks lie in SpaceX’s importance to the US government. SpaceX depends heavily on contracts with Nasa and the Pentagon, and Musk has poured hundreds of millions of dollars into Republican campaigns.
Analysts say investigations into Musk’s companies could resume if Democrats regain power in Washington. Musk wrote on X, “Live by the sword, die by the sword,” after a report on Democrats’ plans to investigate him.
Tesla’s large China manufacturing base could also draw national security scrutiny. JPMorgan analysts said one option would be to wall off Tesla’s China business or hand control to a China-based consortium, similar to the TikTok arrangement in the US.
Is There a Bursa Malaysia Angle to the SpaceX-Tesla Merger?
The source article does not name any Bursa Malaysia-listed company, so no local stock code is tied to this deal. Any Bursa exposure would come from separate holdings, not this announcement.
Key Takeaways
- Musk called the SpaceX-Tesla merger “a good idea”, with a combined value of about US$3.5 trillion.
- Musk holds about 82% of SpaceX’s voting power and about 20% at Tesla.
- A majority of all Tesla shares is needed, and loyal retail investors hold an estimated 25% to 27%.
- Dan Ives of Yorkville Ives puts the odds at 90% by early 2027, with a possible threshold above US$500 per share.
- Government contracts and Tesla’s China operations are the main obstacles named by analysts.
Frequently Asked Questions
Is the SpaceX-Tesla merger going ahead?
The deal is not certain, according to Musk. Dan Ives of Yorkville Ives puts the odds at 90% by early 2027.
How much is the SpaceX-Tesla merger worth?
The combination would be worth about US$3.5 trillion, the largest corporate deal in history. SpaceX is valued at about US$2 trillion and Tesla at about US$1.5 trillion.
What percentage of Tesla shares does the SpaceX-Tesla merger need?
The deal needs support from a majority of all Tesla shares. Loyal retail investors hold an estimated 25% to 27% of Tesla shares.
Why does the SpaceX-Tesla merger need Elon Musk’s approval?
Musk holds about 82% of SpaceX’s voting power and about 20% at Tesla. Analysts say that control is the main reason the deal is about control.
This article is for general information only and is not investment advice. Always do your own research before making any investment decision.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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