Musk calls a $3.5 trillion Tesla-SpaceX combination a good idea, Bloomberg reports

Elon Musk said it is a good idea to combine his rocket company SpaceX with his car company Tesla, Bloomberg reported on 21 October 2026. Bloomberg valued a combined group at about $3.5 trillion. No terms or timetable for any deal have been made public.

What happened

Bloomberg reported at 10:26 UTC on 21 October 2026 that Musk described a combination of SpaceX and Tesla as a good idea. Bloomberg put the value of the two businesses together at roughly $3.5 trillion. Earlier the same day, its Asia Trade programme said the two companies were discussing a potential merger. The same programme said SpaceX's third-quarter results had beaten expectations.

What we know and what we do not

The confirmed facts are limited. Musk supports the idea, the companies are reported to be in discussions, and the combined value is estimated near $3.5 trillion. The sources do not say how a deal would be structured, how shares would be exchanged, when it could happen or whether either board has approved anything. For now, we treat this as an idea under discussion, not an agreed transaction.

Why markets watch it

A combination valued near $3.5 trillion would be one of the largest corporate deals on record. Large merger news often brings sharper price swings in the shares of the companies involved, because investors reassess valuation, governance and future strategy. Deals between listed companies also usually need approval from shareholders and regulators, which can take time and add uncertainty. Traders who follow Tesla or US technology stocks may see more news flow and volatility around any new detail.

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What to watch next

The next step to watch is any official statement from Tesla or SpaceX that confirms talks or sets out proposed terms. Details on valuation, share exchange and the approval process would show how far the discussions have gone. Further information on SpaceX's third-quarter numbers could also add context. Until then, headlines on this story may stay sensitive to any comment from Musk or the two companies.

Sources: Bloomberg.