The possibility of a SpaceX, Tesla merger has moved beyond speculation and into formal boardroom discussions. Yet despite Elon Musk’s public endorsement of the idea, both companies are warning investors not to mistake an attractive possibility for a guaranteed deal.

In separate regulatory filings, SpaceX and Tesla Inc. confirmed that each company has established a special committee to examine a potential combination. The announcements followed Musk’s comments earlier this week that bringing the two businesses together would be a “good idea.”

However, the path toward a merger remains uncertain. Both companies have stressed that their reviews could end without an agreement, leaving investors watching closely as the boards weigh the potential benefits against the risks.

SpaceX, Tesla Merger Moves Into Formal Review

Separate Committees Begin Evaluating a Potential Deal

SpaceX disclosed in its quarterly filing Thursday that its board had created a special committee to assess a possible transaction involving Tesla. The company also made clear that the committee would not automatically support a deal simply because Musk favors the concept.

Instead, the committee could refuse to recommend a transaction if its members concluded that it would not serve the best interests of SpaceX shareholders.

“There can be no assurance that any agreement will be reached or that any transaction will be consummated,” SpaceX stated in its filing.

The company added that any proposed combination would need approval from three key parties: the special committee, the full board and SpaceX’s controlling shareholder. Musk holds that controlling position, giving his role considerable significance in any potential transaction.

Still, the approval process creates several hurdles that a merger would have to clear before becoming reality.

Tesla Explores a Deeper Relationship With SpaceX

Tesla is conducting a parallel review of its own. In a separate quarterly filing dated Wednesday, the electric vehicle manufacturer said its special committee was examining opportunities to deepen the company’s relationship with SpaceX.

The review includes the possibility of a full business combination, although the language leaves room for other arrangements that would bring the two companies closer together.

Tesla’s filing stated that the relationship could be expanded “through certain arrangements including without limitation a business combination.”

The company also emphasized that the existence of a review does not mean a transaction will ultimately occur.

“While there could be merits to a transaction, there is no assurance that any such transaction will be consummated,” Tesla said.

The distinction matters. A closer business relationship could take several forms, while a merger would represent a far more significant step, potentially reshaping the relationship between two of Musk’s most prominent companies.

Elon Musk Acknowledges Conflict of Interest

Why the Billionaire Cannot Join the Discussions

Musk addressed the possibility of a merger during SpaceX’s quarterly earnings call Tuesday, revealing that both companies had formed special committees following requests from shareholders.

He also acknowledged a complication at the center of the process: his leadership and ownership ties to both companies create a conflict of interest that prevents him from participating in the committees’ discussions.

That restriction puts the formal review in the hands of the committees responsible for examining whether a transaction would benefit their respective companies and shareholders.

Musk’s public support, therefore, does not settle the question. The independent review process must still determine whether the proposed combination makes sense.

Musk Calls a Merger a Good Idea, but Rejects Certainty

During the earnings call, Musk pushed back against the assumption that the companies were inevitably heading toward a merger.

“I think some people out there assume that a SpaceX and Tesla merger is a certainty, and I think that would be overstating it,” he said.

But when asked whether he believed the idea had merit, Musk gave a clear answer: “Do I think it would be a good idea? Yes.”

Those remarks capture the uncertainty surrounding the proposal. Musk sees potential value in combining the businesses, but neither company has committed to completing a transaction.

For now, the merger remains an option under examination rather than a deal waiting for a signature. The special committees must assess the proposal, the necessary approvals must follow, and the companies have offered no guarantee that the process will produce an agreement.

The next move rests with the boards and their review committees. Until they reach a decision, the prospect of a SpaceX-Tesla combination remains a compelling possibility—not a done deal.