Musk pushes for Tesla‑SpaceX merger before Trump leaves

Both companies have set up special committees on their boards to review the possibility, according to Musk’s statements on the SpaceX earnings call. The committees are described as being made up of independent board members, though Musk’s influence over the process is widely noted. This initial step is reported by both Gizmodo and Electrek.

Timeline and politics

Insiders reportedly say the deal must close before the end of Donald Trump’s presidency, with a target to announce it in the first half of 2027. Bloomberg’s anonymous sources claim a clock is ticking, and that finishing the merger during Trump’s final term would avoid potential scrutiny after the 2026 midterm elections. The timing is seen as a way to keep the political environment favorable for the transaction. The plan would let the companies complete the merger while the current administration is still in office.

Market conditions pose a risk to the merger timeline. A sustained sell‑off in chip and AI stocks could erode investor enthusiasm and weaken SpaceX’s valuation, which is being used as the deal currency. SpaceX’s shares have recovered strongly since its IPO, but a drop in their price would complicate terms. The combined companies would also need to survive a possible downturn in AI capital spending at a time when investors question the payoff of such large expenditures.

Approval from shareholders is a hurdle for Tesla, where Musk owns about 20% of the voting shares and would need a 50% vote of all outstanding shares. The company has prepared a special “auto‑vote” system to encourage retail participation, while SpaceX’s high voting control by Musk makes its approval more straightforward. The special committees are expected to recommend the merger, but final approval must come from both sets of shareholders, adding another layer of uncertainty to the deal.