# Tesla and SpaceX Form Special Committees to Weigh a Merger That Could Create a $3.5 Trillion Giant

> Elon Musk says Tesla and SpaceX have each formed special committees of independent directors to explore a merger that would combine the two companies into a roughly $3.5 trillion giant, a deal he says he cannot personally negotiate because he is a conflicted party.

- Source: American Post News
- Canonical URL: https://americanpostnews.net/article/tesla-and-spacex-form-special-committees-to-weigh-a-merger-that-could-create-a-3-5-trillion-giant
- Author: staff
- Section: Economy
- Published: 2026-10-21T12:57:34.624Z
- Updated: 2026-10-21T12:57:34.624Z
- Tags: Elon Musk, Tesla, SpaceX, Mergers

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Elon Musk said on October 20 that the boards of Tesla and SpaceX have each formed special committees made up of independent directors to review a possible merger between the two companies, a combination that would create a roughly $3.5 trillion giant at current market values. Musk called a merger a good idea but said he is not a member of either committee and is not involved in the talks himself, since securities rules treat him as a conflicted party on both sides of the deal. He said the committees have not agreed on terms and there is no guarantee a deal gets done.

The talks come amid sharp swings in Musk's own net worth. He became the first U.S. dollar trillionaire when SpaceX went public in June 2026, with shares pricing at $135 and closing their first day at $161.11, but a later slide in SpaceX's stock pulled him back under that threshold within weeks. Forbes said he regained trillionaire status on October 9, then pegged his net worth at $977.2 billion on October 13 after SpaceX shares slipped again. Musk holds about 45% of SpaceX's shares and roughly 82% of its voting power, a structure built on multiple classes of stock that give him outsized control over the company.

A merger would also fold in Musk's other ventures. Tesla invested $2 billion in Musk's AI company xAI in January 2026, months after Tesla shareholders had voted down a similar investment the previous November, and SpaceX separately acquired xAI in a deal that valued it at $1.25 trillion.

The proposal is drawing scrutiny over corporate governance at both companies. Nabil Ahmed, a senior director at Oxfam America, pointed to Musk's fortune as emblematic of what he called a new Gilded Age of wealth inequality. Any merger would still need majority approval from Tesla's outstanding shares to move forward.

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Originally published by American Post News. Free to cite with attribution and a link to https://americanpostnews.net/article/tesla-and-spacex-form-special-committees-to-weigh-a-merger-that-could-create-a-3-5-trillion-giant.