Tesla and SpaceX are nearing a merger, with a deal possibly as early as December

Elon Musk's two largest companies, Tesla and SpaceX, are one step closer to a merger. According to the Bloomberg news agency, negotiations are progressing well, and an agreement could potentially be announced as early as December.

With a combined market capitalization of approximately $3.4 trillion, it would be one of the largest corporate deals ever.

According to Bloomberg sources, the boards and advisers of Tesla and SpaceX are currently working on the terms of a merger. Among other things, they are discussing how the merged company should be managed and how many SpaceX shares Tesla shareholders would receive.

The negotiations have now progressed to the point where the companies may be able to announce an agreement as early as December. An announcement in early 2027 also remains a possibility.

Musk had already confirmed in October that both companies had appointed special committees of independent directors to explore a potential merger.

It would be a historic deal. SpaceX has been valued at over $1.9 trillion since its IPO in June, while Tesla has a market capitalization of around $1.5 trillion. Together, the companies thus represent around $3.4 trillion.

A merger would bring several of Musk’s major ventures under one company. Tesla focuses on electric cars, batteries, self-driving vehicles and humanoid robots. SpaceX develops rockets and satellites, but is now also active in the field of artificial intelligence.

It is precisely this technology that plays a key role in the plans. Musk wants to better align the activities of both companies and use artificial intelligence for applications such as space travel, self-driving cars and robots.

The collaboration has already begun. Tesla and SpaceX are collaborating on Terafab, a large chip factory in Texas. The companies are also increasingly seeking collaboration in other areas.

Nevertheless, a merger is not straightforward. SpaceX works closely with the U.S. government and defense sector, while Tesla manufactures a large proportion of its cars in China.

According to JPMorgan analysts, these interests could cause problems in the approval of the merger. In particular, U.S. concerns about national security and Tesla's ties to China pose potential obstacles.

The deal is also politically sensitive. The Democrats have controlled Congress since the midterm elections and want to investigate Musk's business and political activities further.

The negotiations have not yet been concluded. Whether the companies actually merge depends, among other things, on the final terms and the necessary approvals.