Elon Musk signals Tesla and SpaceX could merge. Here’s why he thinks it’s a good idea.

October 21, 2026 / 11:29 AM EDT / CBS News

Elon Musk on Tuesday said SpaceX and Tesla are exploring a merger — a business combination that one Wall Street analyst said could be worth nearly $5 trillion, which would make it the largest deal in corporate history.

"Both SpaceX and Tesla have formed special committees to discuss this idea at the request of shareholders, and these special committees consist of independent directors," Musk said during SpaceX's earnings call with investors, adding that he sees "a lot of merit to combining the companies."

Tesla's stock price rose $14.01, or 3.8%, to $387.72, while SpaceX shares jumped $14.62, or 9.9%, to $162.41 in morning trading. Here's what to know about a possible merger between the companies.

The merger would likely be valued at close to $5 trillion, Dan Ives, partner and senior managing director at investment firm Yorkville Ives & Co., told CBS News.

SpaceX is currently valued at $1.98 trillion, while Tesla's market capitalization stands at about $1.5 trillion. But Tesla shareholders would likely demand a premium for their shares to agree to the merger, Ives noted.

"For the merger to get passed by shareholders, it would have to be…

Original source: https://www.cbsnews.com/moneywatch/