Musk says Tesla and SpaceX boards have formed merger committees: Tesla would need 50% of all shares

Elon Musk said on SpaceX's third-quarter earnings call Tuesday that the boards of SpaceX and Tesla have each formed a special committee to discuss a possible merger. CNBC, which covered the call live, quoted him saying he thinks a combination would be a good idea, "but at the end of the day, the shareholders have to be supportive of this." The Wall Street Journal, the Financial Times and Seeking Alpha ran the same news.

What was actually said

According to CNBC, Musk said the committees were formed "at the request of shareholders" and "consist of independent directors." Because he is a "conflicted party," he said, he cannot take part in the discussions. He argued there is "a lot of merit to combining the companies," citing shared work on software and chips. CNBC noted that investor Ira Ehrenpreis sits on both boards.

That is all that has been disclosed. No terms, no exchange ratio, no timetable and no filing were mentioned in the coverage we read. A committee being formed means the question is being studied, not that a deal exists.

The number that matters: 50% of every share

Musk described the Tesla hurdle himself. "We will need a 50% vote of all shares, not just those who vote, but of all shareholders, and that's quite a high hurdle," he said, per CNBC.

The difference is large. In a typical vote, a share that is not cast counts for nothing. Under an all-shares standard, every share that stays home works as a "no." That is why the standard is hard to meet. Our earlier look at Tesla retail voting found turnout of about 28% in a recent vote: SEC and Tesla's retail auto-vote framework. Musk's own stake counts toward the 50%, but even so, a majority of all shares cannot be reached without a large share of ordinary holders actively voting yes.

The two companies, side by side

Nasdaq data read Tuesday evening lists Tesla's market value at about $1.48 trillion, with shares closing at $373.71, up 1.5%. SpaceX is listed at about $2.01 trillion, with its Class A shares closing at $147.79 and trading near $154.77, up about 4.7%, in after-hours trading around 5:50 PM ET. SpaceX is the bigger company on that measure, which is part of what makes the question of who is buying whom, and on what terms, unusual.

The operating picture differs too. As CNBC reported, SpaceX posted third-quarter revenue of $14.58 billion and net income of $4.4 billion, with almost all profit coming from Starlink. We covered the results in SpaceX beats with $14.58B revenue. Tesla reports its own quarter after the close on Wednesday: what to watch. The two companies already overlap on AI chips, where CNBC says SpaceX is working with Tesla and Intel on the planned Terafab factory in Texas. Background on the existing ties is in how SpaceX owning xAI touches Tesla.

Who this touches

• Tesla holders face the all-shares vote, plus the question of how a car-and-energy business is valued against a company where AI is now the largest revenue line.
• SpaceX holders own a stock that gained roughly 5% after hours on earnings alone. A merger vote would add a second driver.
• Options traders should expect both names to carry event risk into Tesla's report Wednesday, when management will probably be asked about the committee.

What to watch next

Tesla's earnings call Wednesday is the first chance to hear Tesla's side. After that, the signals to look for are an 8-K or proxy filing naming the committee members, any adviser hires, and any stated terms. Without those, this stays a statement of intent.

Sources: CNBC live coverage of SpaceX's Q3 2026 earnings; reporting by the Wall Street Journal, the Financial Times and Seeking Alpha; quotes and market values from Nasdaq, read Oct 20, 2026; filings on SEC EDGAR. This is market information, not investment advice.