Elon Musk says Tesla and SpaceX are discussing a $3.5 trillion merger, but he is not part of the talks

Elon Musk said Tesla and SpaceX are considering a mega-merger valued at about $3.5 trillion, while also saying he is not directly involved in the discussions. Speaking Tuesday, Musk characterized the situation as a back-and-forth occurring between two sets of people, describing it as “an odd kabuki dance” in which the two sides are talking but he cannot join the conversation.

In the remarks, Musk also indicated that his absence is deliberate or at least circumstantial, without spelling out why he would not be included in any potential deal talks. He did not provide a timetable, confirm whether board-level negotiations have begun, or specify what form a merger would take if it moves forward.

The comment arrives at a time when markets routinely react to Musk’s public statements about the companies he leads, particularly when those statements touch on corporate combinations. Still, Musk’s framing suggests this is not a finalized process with an agreed structure or announced parties, and he did not describe any specific terms such as exchange ratios, governance changes, or where shareholder approval would fit.

A potential $3.5 trillion transaction also underscores the magnitude of what is being discussed. For context, the figure would imply a valuation on a scale far larger than most industrial combinations, and it would likely require careful regulatory and market scrutiny even if the parties view it as a strategic consolidation rather than an operating overhaul.

Neither Tesla nor SpaceX, in the reported exchange, laid out additional details about the merger concept. Musk did not indicate whether the “weighing” refers to informal feasibility work, internal scenario planning, or active deal negotiations with counsel and regulators.

Beyond the headline number, the underlying theme is the growing overlap between Tesla’s automaking and energy footprint and SpaceX’s space launch and satellite-related business. A combined structure would raise questions about capital allocation priorities, how each company’s leadership would be organized, and whether investors would be exposed to a broader mix of automotive, energy, and aerospace risk.

For shareholders, the main uncertainty is process and disclosure. Based on the reported remarks, the parties have not publicly described whether there is an approaching announcement, a formal engagement stage, or any binding agreements that would change the company’s near-term plans.

The immediate watch items are whether any corporate filings, board or committee actions, or official company statements follow Musk’s comment, and whether regulators or industry stakeholders announcement early interest in reviewing any proposed structure. Absent that, the market is likely to treat the $3.5 trillion figure as an estimate or a scenario rather than a negotiated deal value.