By Priya Raman

A possible SpaceX-Tesla merger could be announced around Tesla's Dec. 3 annual shareholder meeting, although the companies have also discussed pushing an announcement into early 2027, Bloomberg reported.

That is a timetable, not a completed agreement. The companies' boards and advisers are still negotiating the deal terms, Bloomberg said.

Tesla shares rose as much as 1.9% to an intraday high on Thursday, while SpaceX shares were up 0.5% at 3:20 p.m. ET, according to Bloomberg. Following its June initial public offering, SpaceX is valued at more than $1.9 trillion; Tesla is worth about $1.5 trillion.

Who controls the shareholder vote?

On SpaceX's October earnings call, Musk disclosed that the Tesla and SpaceX boards had formed special committees of independent directors to examine the combination.

Musk said: "Because I'm a conflicted party, I can't actually be in the discussions of the special committees."

The structure keeps Musk outside those committee discussions. He holds about 20% of Tesla, while super-voting shares (shares with enhanced voting rights) give him roughly 85% of SpaceX's voting power, Electrek reported, citing SpaceX's S-1 filing.

The arithmetic does not guarantee approval. His roughly 85% voting power at SpaceX cannot, by itself, deliver the consent required from Tesla's shareholder base. Musk also said: "A deal would need the backing of 50% of all Tesla shareholders, not just a majority of votes cast."

He has called a merger a good idea, but made shareholder support a condition. The threshold therefore extends beyond the votes of Tesla's largest shareholder.

What terms remain unresolved?\n

• Governance: The boards and advisers are negotiating how the merged company would be governed, meaning how it would be run and controlled, Bloomberg said.
• China: How to wall off Tesla's China business remains an obstacle, according to Bloomberg.
• Share offer: The number of SpaceX shares offered to Tesla investors is among the factors under discussion, Bloomberg said.
• Timing: The companies have aimed to close the merger before President Donald Trump's term ends. They have also considered a delay that would push the announcement into early 2027, Bloomberg reported.

What does Congress change?

Democrats will control Congress in January after their midterm victories, and they have vowed to scrutinize CEO Elon Musk's business and political activities, Bloomberg reported.

The new congressional timetable overlaps with the companies' target of closing before President Donald Trump's term ends. For investors, political scrutiny now sits alongside the unresolved governance talks and the 50% shareholder threshold.

A slip into early 2027 would not necessarily avoid that scrutiny, because Democrats take control in January either way. That is the political constraint on the December timetable.

What links the businesses?

Tesla and SpaceX already share a commercial project: Terafab, a chip factory they have aimed to construct together in Texas, Bloomberg reported. If approved, a merger would place that shared industrial project inside one corporate group rather than create the first operating link between them.

The factory plan is not a substitute for a workable shareholder deal. It provides an operating rationale, while the unresolved share offer, China separation and governance design determine the merger's corporate shape.

What has to happen next?\n

Four gates remain: final terms, the structure of Tesla's China business, the number of SpaceX shares offered to Tesla investors, and approval from 50% of all Tesla shareholders. Dec. 3 remains a possible announcement date. Early 2027 is the alternative already under discussion.