SpaceX and Tesla could formalize a merger as early as next month, according to reports. If completed, it would be the largest merger and acquisition in history.
According to sources speaking on condition of anonymity on the 12th (local time), the boards and advisers of the two companies are discussing merger terms and the governance of the combined entity. The deal announcement is said to be possible as early as December. The sources said a delay to early 2027 is also being considered.
SpaceX, which went public in June, has an estimated market capitalization of $1.9 trillion (about 2,538 trillion won). Tesla's market cap is around $1.5 trillion. Combined, the two would create a giant with a market cap above $3 trillion. Currently, five companies on the New York stock market have market caps above $3 trillion: Nvidia, Apple, Microsoft, Alphabet and Amazon.
There are also reports that CEO Elon Musk is trying to speed up the timeline. The Democratic Party, which won big in the midterm elections, will control both the Senate and the House when the new session opens in January next year. The sources said Musk wants to announce the merger before then. The explanation is that he judges the deal must be completed during President Trump's term to avoid Democratic scrutiny. The Democrats have previously vowed to scrutinize Musk's business and political activities, in which he actively backed President Trump and the Republican Party.
There are also obstacles. SpaceX holds many contracts tied to the U.S. defense sector. Tesla, by contrast, has a production base in China. Concerns have been raised that this could trigger national security issues and U.S.-China diplomatic friction. In a client report last month, JP Morgan analyst Rajat Gupta pointed out, "If Tesla's Chinese manufacturing base is not separated, it could be a key difficulty in obtaining regulatory and shareholder approval for the merger."