SpaceX and Tesla explore merger as Meta sets new stock deal with Zuckerberg

SpaceX and Tesla have established board committees to evaluate a possible merger. Separately, Meta has approved a new stock class that would help finance its business while preserving Mark Zuckerberg’s voting control. The merger remains undecided, while Meta has scheduled its stock changes for January 2027.

Elon Musk endorsed combining SpaceX and Tesla during SpaceX’s October 20 earnings call, but said an agreement was not certain. SpaceX subsequently confirmed that its committee had reached no decision. Any transaction would require additional approval from that committee, the board and its controlling shareholder.

Meta’s arrangement would give investors one nonvoting Class C share for every existing Class A or Class B share. Zuckerberg could sell a portion of his new shares without surrendering voting power, providing funds that could cover a potential California wealth-tax bill. He also agreed to remain in California, or another jurisdiction housing Meta’s headquarters, for eight years, subject to continued leadership and exceptions for significant unforeseen circumstances.

Meta said the new shares would provide another way to raise capital, pay employees and finance acquisitions as it expands its AI investments. The company expects the new share class to take effect in January 2027.

For SpaceX and Tesla, the next step remains the committees’ evaluation rather than an announced transaction. SpaceX cautioned that discussions might produce no agreement and that its committee could decline to recommend a combination.