SpaceX and Tesla are advancing merger talks, and an announcement could come in December or early 2027, according to people familiar with the matter.

Boards and advisers are negotiating deal terms and the governance structure.

Musk said in October that both companies had formed special committees of independent directors to review a potential combination.

These committees are a standard safeguard in conflicted transactions.

They often negotiate with independent advisers and may oversee fairness opinions.

One hurdle is how to separate Tesla’s China operations because SpaceX holds US government and defense contracts.

In September, Tesla’s China-made EV sales had extended a growth streak, though momentum was fading.

Depending on the combined company’s ownership and governance, it could also face scrutiny under US defense-contractor rules on foreign ownership, control, or influence.

That could require disclosures and mitigation measures.

🔗 Source: Bloomberg

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