WORLDTECHSpaceX May Announce Tesla Deal as Soon as December, Bloomberg Says
Bloomberg reported on November 12 that Elon Musk's SpaceX could announce an agreement to buy Tesla as early as December. According to the report, the combination would be the largest merger in the world.
Talks now focus on price and control
Discussions between the two Musk-led companies have advanced to negotiations over price and control, Bloomberg reported. Boards and advisers at both firms are taking part, and the talks could run into early 2027.
One unresolved point is how many SpaceX shares Tesla investors would be given if the rocket company takes over the carmaker and solar business. Tesla is based in Palo Alto, while SpaceX, a space company, is based in Hawthorne.
Valuations frame the scale of the deal
SpaceX is valued at more than $1.9 trillion following its June initial public offering. Tesla is worth about $1.5 trillion. Those figures give a sense of the size of the proposed transaction, which the report calls the world's largest merger.
Initial market and company response
Neither company has commented on the report. Tesla shares rose by as much as 1.9% after it was published.
Open questions
- How many SpaceX shares would Tesla investors receive in a deal?
- Will the talks produce a signed agreement by December?