Tesla and SpaceX boards create special committees to examine possible merger

Tesla and SpaceX have each formed special committees of independent directors to review a possible merger, marking the clearest signal yet that the long-rumored combination is being examined at the board level. Elon Musk said he supports the idea, but noted he is not involved in the talks because he is considered a conflicted party.

The committees were created at the request of shareholders, Musk said during SpaceX’s third-quarter earnings call. The arrangement places the decision-making in the hands of independent directors, not Musk, who is CEO of both companies and the largest individual shareholder in each.

The move follows months of speculation about a possible tie-up between the two companies, both of which are central to Musk’s broader business empire. Tesla is publicly traded, while SpaceX remains privately held, and any formal combination would raise major governance and valuation questions that boards typically handle through independent review.

Independent directors to weigh the next steps

Musk did not identify the members of either special committee, only saying they are made up of independent directors. A recent Tesla proxy filing lists seven independent board members, including chair Robyn Denholm, Ira Ehrenpreis, former Tesla CTO JB Straubel, Joe Gebbia, Jack Hartung, James Murdoch and Kathleen Wilson-Thompson. SpaceX’s filings list six independent directors, including Ehrenpreis, Randy Glein, Donald Harrison, Steve Jurvetson, Luke Nosek and Roelof Botha.

Musk said he likes the idea of a merger, but cautioned that it is not a guaranteed outcome. He described the process as unusual because discussions are taking place without him, even though he is the central figure at both companies.

The prospect of a Tesla-SpaceX merger has surfaced repeatedly in recent months, fueled by comments from company leaders and by investor curiosity about how Musk might further align his closely linked businesses. Even so, no deal has been announced, and the creation of the committees does not mean one will follow.

For now, the committees appear designed to test whether a merger could make sense for shareholders while keeping the review separate from Musk’s direct influence. Any eventual proposal would likely require further board approval and additional disclosures before investors could evaluate the terms.