Tesla investors face SpaceX merger talks after $4.4 billion profit

Company officials said Elon Musk confirmed SpaceX and Tesla are discussing a merger after SpaceX reported $4.4 billion in third-quarter profit on Oct. 21. Reaction pending.

The talks put Tesla, a listed automaker, at the center of a possible combination with SpaceX’s rocket and AI businesses. SpaceX is privately held, making Tesla the main public-market reference point.

Committees examine Musk combination

Special committees at both companies are examining a possible merger, officials said. SpaceX’s third-quarter profit figure gives investors an earnings anchor for a business that is not directly traded in public markets.

Officials said SpaceX’s AI revenue rose nearly tenfold, tying the merger review to a faster-growing line beyond rockets and vehicles. The open questions for equity holders are the valuation framework, ownership split and whether Tesla shareholders would be asked to approve any transaction.

If committees move toward a deal, Tesla investors would need to price electric vehicles, rockets and AI revenue inside one corporate structure. If talks stall, the public equity effect would remain concentrated in Tesla’s valuation, while SpaceX stays outside direct stock-market trading.

Investors will watch Tesla’s Oct. 21 trading session for the first public equity read-through, along with any company filing or committee update that defines whether the discussions have moved beyond review.