Tesla and SpaceX confirm merger review, with no agreement reached

Tesla and SpaceX have confirmed that board committees are examining a possible combination. SpaceX said its committee had reached no decision and cautioned that the review might not produce a transaction.

Tesla described a broader review of ways to strengthen its relationship with SpaceX, including a potential business combination. Its committee consists of directors without an interest in the transaction. The company said any agreement would require the committee's recommendation and applicable shareholder approval.

The companies already have financial and commercial ties beyond sharing Elon Musk as chief executive. Tesla disclosed a $2 billion investment in SpaceX in March and contracts to supply its Megapack energy storage systems. A merger would deepen a relationship that already spans ownership and equipment purchases.

The immediate next step is the committees' evaluation of whether a transaction serves shareholders. SpaceX said proceeding would require approval from its committee, board and controlling shareholder. Its filing explicitly leaves open the possibility that the committee will recommend against a deal.