Tesla (TSLA) recently received the U.S. Securities and Exchange Commission's (SEC) nod to allow retail shareholders to give standing instructions to vote alongside the board. Retail investors aren't usually enthusiastic about participating in voting, and institutional investors typically decide the outcome, even at Tesla, which has a large army of retail shareholders, many of whom are Elon Musk fans.
This news might not make headlines another day, but it arrives amid reports of a potential merger of Tesla and SpaceX (SPCX). Tesla has called the shareholder voting program the Issuer Voluntary Retail Voting Program (IVRVP), and it would give participating shareholders two choices. The first would be to grant blanket approval on all matters, while the second option would apply to “all matters except contested director elections […] or any acquisition, merger or divestiture transaction that, under applicable state law or stock exchange rules, requires approval of the company’s shareholders.”
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www.barchart.com Who Is Backing a Tesla-SpaceX Merger?
The case for a Tesla-SpaceX merger has been building for quite some time and getting support from many who are seen as friendly to Elon Musk. For example, Cathie Wood of Ark Invest — a long-time Musk backer — believes Tesla and SpaceX are better off together. Incidentally, the Ark Innovation ETF (ARKK) also bought more than $17 million worth of TSLA stock on Sept. 29.
Wood is not the only observer backing a Tesla-SpaceX merger. Famous tech analyst Dan Ives — who quit Wedbush Securities in July 2026 to form Yorkville Ives merchant bank — Gerber Kawasaki co-founder and long-time Tesla shareholder Ross Gerber, and Chamath Palihapitiya are among those supporting a potential merger between the two entities.
Dubbed the special purpose acquisition company (SPAC) king during the 2020 to 2021 SPAC boom, Palihapitiya believes a Tesla-SpaceX merger would “create the Berkshire Hathaway (BRK.A) of the modern century." Notably, Palihapitiya has taken several companies public through his SPACs, but barring the rare success story that is SoFi (SOFI), all others — namely Clover Health Investments (CLOV), Virgin Galactic (SPCE), and Opendoor Technologies (OPEN) — are now penny stocks trading at a fraction of their all-time highs.
What Does Elon Musk Think of a Tesla-SpaceX Merger?
Elon Musk has also weighed in on a Tesla-SpaceX merger. Responding to a direct question from Wells Fargo analyst Colin Langan during Tesla's second-quarter earnings call, Musk said that there is “more and more overlap” between the two companies, specifically listing Terafab as an example. However, he continued by saying that such issues are not meant to be discussed on earnings calls, then turned the question over to the company’s General Counsel Brandon Ehrhart. Ehrhart echoed similar views and said that Tesla continues to “benefit from [its] relationship with SpaceX.”
Tesla has also not yet provided the date for its 2026 annual shareholding meeting, which some see as a sign that the company is preparing to announce the merger before the event. I also haven’t seen Musk trying to pump Tesla’s underperforming stock, which has been the worst-performing “Magnificent Seven” stock in the first three quarters of 2026. A sagging TSLA stock would only cajole more shareholders to vote for a merger in hopes of the combined entity soaring higher. While I am usually not one to easily buy into conspiracy theories, the dots seem to connect.
www.barchart.com A Tesla-SpaceX Merger Looks Like an Eventuality
For me, a Tesla-SpaceX merger looks like a real possibility, and we could see it happening soon. Still, while Tesla should be able to get shareholder approval for a potential merger — particularly after the SEC’s blessing for its proposed changes for retail shareholders — the deal is bound to face regulatory scrutiny, particularly in China.
Tesla runs its most productive and profitable factory in China and counts the country as a major market. However, China is very protective about its citizens’ data leaving its borders and has expressed concerns about Tesla's data gathering in the past. These concerns were among the reasons Tesla’s Full Self-Driving (FSD) approvals were held back in China until May 2026. On a similar note, Tesla cars were barred from Chinese military installations in 2021 over spying concerns, an allegation the company obviously denied.
Meanwhile, SpaceX is a major defense contractor in the U.S., and given China’s fussiness over these issues, Tesla may need to separate its China business in order for the merger to get approved in the country.
A Tesla-SpaceX merger would mean a lot of things for investors, the market, and Elon Musk, who is the world’s richest person by a margin. For now, I believe it’s a matter of time before the merger is announced.
On the date of publication, Mohit Oberoi had a position in: TSLA , SOFI . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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