SpaceX is now valued at more than $1.9 trillion, while Tesla is worth about $1.5 trillion. Bloomberg, citing people familiar with the matter, reported that merger talks between the two have made progress. If completed, it would be the largest merger in history.

There are two possible timelines: an agreement could be announced as early as this December, though the possibility of delaying it until early 2027 has also been discussed. The two companies’ boards and advisers are discussing the deal’s terms, who would run the combined company, and how many shares SpaceX would issue to Tesla shareholders.

The merger would bring electric vehicles, energy storage, rockets, and satellites under one company. Artificial intelligence would also be applied to space, autonomous driving, and humanoid robots. Two issues remain unresolved: there is no ready-made plan for ring-fencing Tesla’s China business, and because SpaceX has contracts with the U.S. government and defense agencies, the deal cannot proceed without passing a national security review.

Bloomberg previously reported that the two companies hoped to announce the merger in the first half of 2027 and complete it before President Trump’s term ends. This latest report moves the announcement timeline forward. No agreement has been finalized, and the number of shares to be issued to Tesla shareholders is still under discussion. $SPCXB