TSLA, SPCX Boards Confirm Special Committees On Potential Combination As Megapack Deals And Terafab Plans Deepen Ties

• SpaceX and Tesla continued buying and selling Tesla’s Megapack energy-storage systems from each other during the quarter ended September 30.
• The companies are now planning a joint terafab and will partner on the production of Tesla’s upcoming Roadster vehicle. 
• Tesla also invested roughly $2 billion in SpaceX in March.

Elon Musk-led companies SpaceX and Tesla Inc officially confirmed on Thursday that the two companies have formed special committees to “explore deepening the relationship” between the two companies, days after the CEO confirmed merger contemplations.

Both companies announced their respective board of directors formed a special committee of independent directors for the purpose. The nature of the transaction could include a business combination, the companies said in their quarterly filings with the Securities and Exchange Commission, while adding that there is no assurance that any transaction will be consummated.  

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On SpaceX’s October 20 earnings call, Musk described a combination as a good idea, citing potential benefits in areas such as software development, chip design, robotics, and connectivity. He emphasized that he is a conflicted party and is not participating in the committees’ discussions, adding that no terms have been agreed upon and that a transaction is not certain.

SpaceX-Tesla Transactions In Q3

SpaceX and Tesla continued buying and selling Tesla’s Megapack energy-storage systems from each other during the quarter ended September 30. From SpaceX’s perspective, it bought $151 million worth of Megapacks from Tesla in the three months and $480 million worth over the first nine months of the year; those amounts show up as capital spending on SpaceX’s books.

From Tesla’s perspective, it recorded $221 million of revenue and $171 million of related costs from selling Megapacks to SpaceX in the third quarter. As of September 30, Tesla still had $729 million in receivables from SpaceX and $648 million in deferred revenue tied to Megapacks that had been ordered but not fully delivered.

Both companies stated that other transactions between them during the three and nine months ended September 30, 2026, were immaterial.

Future Collaboration

Tesla and SpaceX intend to jointly put up a joint semiconductor manufacturing project called Terafab aimed at producing chips for artificial intelligence, robotics, and space-based computing. Initially announced in March, the facility is planned for Grimes County, Texas, with an initial investment of about $16.8 billion and a longer-term goal of generating more than one terawatt of AI compute capacity per year. The companies have said the plant would make chips for applications including Tesla’s Optimus robots and Cybercabs as well as SpaceX’s planned space-based data centers.

On SpaceX’s October 20 earnings call, Musk said the project aims to produce a first test chip in the first half of 2027 and reach volume production by the third quarter of 2028. Musk on Tuesday also put Terafab development as one of the key perks of a possible combination between his two companies.

Earlier this month, Tesla also unveiled the latest version of its Roadster vehicle, complete with thrusters and technology from SpaceX to allow the car to fly. Production of the vehicle is now slated to start in 2028. On Wednesday, Tesla executive Lars Moravy dismissed speculation that the vehicle will not make it into production, saying on X, “we don’t show things that we can’t do in production.”

Tesla’s Equity Investment In SpaceX

Tesla currently holds an equity investment in SpaceX. It invested approximately $2.00 billion in SpaceX common stock in March, representing an ownership stake of less than 1%. As of September 30, the fair value of the investment stood at $2.9 billion. Tesla recorded a $142 million unrealized loss on the holding in the third quarter and an $863 million unrealized gain for the first nine months of the year.

How Did TSLA And SPCX Retail Traders React?

On Stocktwits, retail sentiment around TSLA stock was 'bullish' at the time of writing, while sentiment around SPCX was 'extremely bullish.'

While TSLA stock has dropped 17% year-to-date, SPCX closed on Thursday at about $145, above its June IPO price of $135. 

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