During Tesla's third quarter earnings call, CEO Elon Musk revealed that special committees have been formed to discuss a possible merger between Tesla and SpaceX. Musk described the idea as 'a good idea', but acknowledged that it may not materialise. The committees, made up of independent directors, will determine the terms of any deal, with Tesla shareholders needing to approve a 50% vote. A merger would create a company valued at over $3.6 trillion, but could face challenges, such as Tesla owners owning a smaller share of a larger entity and SpaceX’s launch goals requiring significant funding.

Musk believes there is ‘a lot of merit to combining companies’ due to shared interests in superintelligence, chip design, robotics, and space travel. However, Wall Street analysts and legal experts predict SpaceX would absorb Tesla. This would result in SpaceX shareholders maintaining majority control, while Tesla shareholders may oppose the deal. A merger could create a unified company for those supporting Musk's vision of the future, but the process would require shareholder approval and could face considerable hurdles.