SpaceX says Tesla merger needs Musk’s approval, discloses megapack purchases

Fort Bend County approved 30-year property tax breaks for Tesla, aiming to attract a $10B solar plant and 9,700 jobs. The deal waives taxes on machinery and inventory. Tesla must meet investment and job targets. County Judge Wong abstained due to ties with SpaceX. Musk confirmed merger talks between Tesla and SpaceX, requiring 50% shareholder approval.

SpaceX's SEC filing reveals that Elon Musk, who controls 85% of SpaceX's voting power, will have final approval on any merger with Tesla, despite recusing himself from talks. Both companies formed special committees to evaluate a potential deal, estimated to create a $3.5 trillion entity. Tesla shareholders must approve the merger with a 50% threshold. Tesla's annual meeting is December 3.

Tesla's shares fell 0.25% to $373.64 after reporting $28.05B revenue, flat YoY, and a 56% drop in operating income to $718M. $786M in tariff refunds supported margins, raising questions about sustainability. Free cash flow was $1.53B. Investors scrutinize earnings quality and future margin growth.

NHTSA proposed amending FMVSS No. 108 to ease turn-signal requirements for automated vehicles like Tesla's Cybercab, removing the need for manual controls. The proposal also allows optional cyan ADS marker lamps for driverless operation. Tesla is reviewing NHTSA's queries about Cybercab compliance, with a response due October 30. The changes aim to accommodate evolving vehicle technologies without requiring exemptions.

Tesla's stock dropped 2% after it canceled Cybertruck sales in Australia and New Zealand, citing engineering and economic challenges. The company will refund $150 deposits and offer incentives for switching to other models. Cybertruck sales in the U.S. fell 63% year-over-year to 5,400 units in Q3 2025, according to Cox Automotive data.

Tesla has begun mass-producing its Optimus robot at its Fremont factory, with plans to deliver units to external companies by late 2024. The company aims to ramp up production to 20,000 robots per week and has established an 'Optimus Academy' for AI training. Tesla also secured tax incentives for a $10.1 billion solar cell factory in Texas, pending final approvals. Additionally, Elon Musk disputed NASA's estimate of Starship launches needed for lunar missions, suggesting a lower number.