TSLA, SPCX Boards Confirm Special Committees On Potential Combination As Megapack Deals And Terafab Plans Deepen Ties

Elon Musk has proposed a merger between SpaceX and Tesla, valued at $3.5T, forming the largest corporate deal in history. SpaceX, public since 2024, is valued at $2T, while Tesla is valued at $1.5T. Musk cited AI, chips, energy, and connectivity as key drivers. Analysts expect a 90% chance of approval by early 2027, pending Tesla shareholder approval and regulatory hurdles.

The Nasdaq Composite rose 0.67% to 26,601.732, driven by SpaceX's first quarterly profit and Super Micro Computer's strong revenue outlook. SpaceX shares jumped 10.7%, while Tesla gained 3.7% on merger speculation. Netflix fell on subdued profit expectations. Hardware firms like Dell and HPE also rallied on AI demand.

SpaceX stated that any potential merger with Tesla would require Elon Musk's approval, despite his recusal from talks due to conflicts. Musk previously endorsed the idea, forming special committees to discuss it. SpaceX's filing noted no decision has been made, and further approvals are needed. Analysts expect a merger, but disagree on terms. Musk's comments may delay the process and raise shareholder concerns, according to insiders.

Elon Musk has proposed merging SpaceX and Tesla, forming a $3.5 trillion entity. SpaceX, valued at $2 trillion, focuses on space tech and AI, while Tesla, valued at $1.5 trillion, is known for electric vehicles and robotics. Musk believes the merger would be beneficial, though analysts note potential challenges, including regulatory hurdles and political risks. The deal requires majority approval from Tesla shareholders.

General Motors (GM) announced a new centralized computing architecture for its vehicles, supporting both gas and electric powertrains. The system, debuting in the 2028 Cadillac Escalade IQ, aims to reduce complexity, improve software features, and enhance connectivity. GM claims 40x more computing power, 30% less wiring, and 50% faster cellular connectivity. The move is part of GM's strategy to compete with Tesla and other automakers in offering advanced software-defined vehicle features.

Tesla reported Q3 2025 revenues of $28.05B, down 0% YoY, with automotive operations contributing $20.56B. CEO Elon Musk and CFO Vaibhav Taneja highlighted Full Self-Driving (FSD) and Cybercab as key growth areas, with 75% of new customers subscribing to FSD. Musk expects unsupervised FSD by Q2 2027. Tesla shares rose 3.41% to $386.47. Musk also discussed a potential merger with SpaceX, though Tesla stated it wouldn't be discussed in the earnings call.