Tesla and SpaceX Merger Could Be Announced by December: Shareholders Eye Premiums

Talks on merging SpaceX and Tesla are advancing, with a possible announcement as soon as December, according to a Thursday report from Bloomberg. The joint valuation of the two firms is approximately $3.5 trillion, which would set a record for the biggest corporate combination.

Terms have not yet been finalized, and the deal might be delayed until 2027. Tesla investors are focused on the exchange ratio — the number of SpaceX shares each Tesla share would receive — and the premium attached.

What Would Tesla and SpaceX Shareholders Obtain?

Alexander Perry of Bank of America sees SpaceX acquiring Tesla using shares rather than cash. With a 20% premium applied, he calculated that Tesla shareholders would hold roughly 47% of the merged entity, based on October 20 valuations. A higher premium would reduce the stake of SpaceX investors.

As of the time of this report, Tesla shares were priced at $393.65 and SpaceX at $140.33. Before any premium, a single Tesla share was worth approximately 2.8 SpaceX shares.

Regardless of the structure, Elon Musk would maintain control. Barclays projects he would command around 56% of the combined voting rights.

Why Tesla’s Charter Could Still Derail the Merger

Musk holds over 80% of voting power at SpaceX. At Tesla, it is more challenging: the company’s charter demands a majority of all issued shares. Shareholders who do not vote are counted as opposing.

In 2025, that same rule blocked a non-binding proposal for Tesla to invest in xAI. While more votes were cast in favor than against, 473 million abstentions led to its failure. Musk has warned not to assume the deal is certain.

“Some people out there assume that a SpaceX and Tesla merger is a certainty… I think that would be overstating it,” Musk said.

Bloomberg stated that Musk aims to finalize the merger while President Donald Trump remains in the White House. However, Democrats secured majorities in both congressional houses on November 3.

Perry identified China, where approximately half of Tesla’s vehicles are manufactured, as the primary regulatory concern — one of the Tesla-SpaceX merger hurdles a former Tesla director flagged.

Are Tesla Shareholders Voting on December 3?

The answer is no. Tesla’s December 3 annual meeting does not include any merger-related item on its agenda. Musk described the merger as a good idea in October but stepped aside from the process.

Independent committees are now controlling the timeline, and if an announcement is made, it would trigger a vote that Tesla’s charter makes difficult to pass.