Tesla and SpaceX set up merger committees as Tesla profit falls

what happened

Elon Musk said on Tuesday that Tesla and SpaceX have each created a special committee of independent directors to assess a possible combination. On SpaceX's quarterly call, he called the idea sensible but stepped back from the talks because of conflicts of interest. Any transaction would need sign-off from both committees, the boards and shareholders, and discussions are still at an early stage, according to Stocktwits.

Tesla posted third-quarter revenue of $28 billion, slightly below the $28.3 billion analysts expected, while adjusted earnings of $0.48 per share beat the $0.45 forecast. Both measures fell from the same period of 2025. Automotive revenue dropped 3%, energy generation and storage fell 16%, and capital spending jumped 110% to $4.7 billion as the company kept investing in AI, robotics and autonomy. Full-year capex guidance was trimmed to $20 billion from $25 billion.

Elsewhere in EV news, Rivian bought UK startup Third Dimension AI, which builds 3D environments for simulation; terms were not disclosed. Bolt plans a fleet of at least 25,000 autonomous Lucid vehicles in Europe, starting in Madrid in 2027 pending regulatory approval. GM unveiled a fourth-generation platform using LMR cells targeted for 2028, and Ford opened orders for the 2027 Mustang Mach-E at a starting price below $40,000.

why it matters

Tesla's results and capex cut matter for the whole EV group, and the merger idea adds a governance angle investors will track. Talks are at an early stage and any deal needs several approvals, so the immediate effect is likely to be mostly sentiment around TSLA.

market impact

TSLA and EV peers: Tesla's earnings and merger talk shift sentiment across electric-vehicle stocks

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