SpaceX, Tesla Merger Talks Progress — Deal Eyed by December

Quick Answer: SpaceX and Tesla are progressing in merger negotiations, and a deal could be announced as early as December, Bloomberg News reported. The proposed SpaceX Tesla merger would unify Elon Musk’s AI, robotics, EV and aerospace ambitions, but faces steep regulatory hurdles. For shareholders, the key numbers are SpaceX’s market cap of about US$1.90 trillion and Tesla’s around US$1.55 trillion.

The SpaceX Tesla merger is moving closer to a formal announcement. Bloomberg News reported on Thursday, citing people familiar with the matter, that a deal could come as early as December. This report does not involve a Bursa Malaysia-listed company, so Malaysian readers should treat it as a global read-across.

Where Do the SpaceX Tesla Merger Talks Stand?

SpaceX Tesla merger talks technology and AI stocks — The proposed SpaceX Tesla merger would combine AI, robotics, EV and aerospace businesses.

The companies have also discussed a scenario in which the announcement slips into early 2027. Neither company could be immediately reached for comment on the report.

Musk said on SpaceX’s third-quarter earnings call last month that a merger with Tesla would be “a good idea.” He also confirmed that both companies have formed special committees of independent directors to discuss a union.

What Are the SpaceX and Tesla Market Caps?

SpaceX had a market cap of about US$1.90 trillion at last close. Tesla was valued at around US$1.55 trillion.

SpaceX: about US$1.90 trillion
Tesla: about US$1.55 trillion
Gap: SpaceX is ahead by roughly US$0.35 trillion
Combined: about US$3.45 trillion (sum of the two figures)

SpaceX is the larger of the two by a wide margin. Investors tracking the deal will watch whether the combined valuation holds up once terms are disclosed.

Why Could the SpaceX Tesla Merger Face Steep Hurdles?

The deal faces steep regulatory hurdles over SpaceX’s US defence contracts. Tesla’s reliance on China is the second obstacle regulators are expected to examine.

What Is Terafab, and When Will It Produce Chips?

Terafab is a chip manufacturing joint venture between SpaceX and Tesla. Musk said on the earnings call that it should follow this timeline:

First test chip around May or June next year
Volume production by the third quarter of 2028

What Does the SpaceX Tesla Merger Mean for Malaysian Investors?

The valuation gap and the Terafab timeline are the numbers to track. Any announcement in December, or a slip into early 2027, will show how the companies plan to handle the regulatory issues.

Malaysian investors who want a structured way to track fast-moving names can start with our AI Stock Analysis for Malaysians guide. Stocks in the same theme on Bursa Malaysia are worth monitoring for any read-across, but this report does not name one.

Key Takeaways

A SpaceX Tesla merger announcement could come as early as December, with early 2027 also discussed.
SpaceX had a market cap of about US$1.90 trillion and Tesla about US$1.55 trillion at last close.
Regulatory hurdles centre on SpaceX’s US defence contracts and Tesla’s reliance on China.
Terafab targets a first test chip around May or June next year and volume production by the third quarter of 2028.

Frequently Asked Questions

When could the SpaceX Tesla merger be announced?

A deal could be announced as early as December, Bloomberg News reported, citing people familiar with the matter. The companies have also discussed a scenario in which the announcement slips into early 2027.

What is the market value of SpaceX and Tesla?

As of last close, SpaceX had a market cap of about US$1.90 trillion. Tesla was valued at around US$1.55 trillion.

What is Terafab?

Terafab is a chip manufacturing joint venture between SpaceX and Tesla. It should produce its first test chip around May or June next year and reach volume production by the third quarter of 2028, Musk said.

Does the SpaceX Tesla merger affect Bursa Malaysia stocks?

The source report does not name any Bursa Malaysia-listed company linked to the deal. Malaysian investors should review the official company announcements before drawing any conclusions for local holdings.

This article is for information only and is not investment advice. Always do your own research before making any investment decision.

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