SpaceX, Tesla merger talks progress

NEW YORK: SpaceX and Tesla are progressing in their merger negotiations, and a deal could be announced as early as December, Bloomberg News reported on Thursday, citing people familiar with the matter.

The proposed merger would unify Elon Musk's AI, robotics, EV and aerospace ambitions under a single corporate roof, though it faces steep regulatory hurdles over SpaceX's US defence contracts and Tesla's reliance on China.

Musk said on SpaceX's third-quarter earnings call last month that a merger with Tesla would be "a good idea" and confirmed the companies had formed special committees of independent directors to discuss a union.

SpaceX and Tesla could not be immediately reached for comment on the report. As of last close, SpaceX had a market cap of about US$1.90 trillion, while Tesla is valued at around US$1.55 trillion.

The companies have also discussed a scenario in which the announcement slips into early 2027, the report said.

SpaceX and Tesla also have a chip manufacturing joint venture, Terafab. The JV should produce its first test chip around May or June of next year and aims to reach volume production by the third quarter of 2028, Musk said on the call.