Tesla. [Reuters]
Tesla. [Reuters]

A merger between SpaceX and Tesla, the two companies led by Elon Musk, could come as early as next month, Bloomberg reported Thursday (local time), citing sources.

The two companies could announce what would be the largest merger in history as soon as December, Bloomberg said.

Both boards formed special committees last month to review the deal, and discussions have recently advanced to the point where the two sides are working out merger terms and governance arrangements, sources said. A key sticking point is how much SpaceX stock Tesla investors would receive, according to the sources.

A combined company would span electric vehicles, rockets, satellite communications and energy storage. It would also allow Musk to apply AI technology — a central focus for the CEO — across autonomous driving, robotics and aerospace operations.

However, separating Tesla's China business remains an unresolved prerequisite, and the Democratic Party's sweeping victory in the midterm elections has raised the prospect of investigations targeting Musk, adding a new complication to the deal.

The two companies have also discussed pushing back any announcement to early next year, sources said.

Rajat Gupta, a JPMorgan analyst, said last month that SpaceX holds contracts sensitive to national security while Tesla operates manufacturing facilities in China and derives substantial profits there, calling the situation "conflicting core dynamics."

SpaceX is currently valued at about $1.9 trillion, while Tesla's market cap stands at roughly $1.5 trillion.


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