Elon Musk has signaled his support for investigating a potential merger between Tesla and SpaceX. While the idea is under consideration, neither company has officially committed to the transaction, as both firms face significant regulatory and shareholder hurdles.

Independent committees at both Tesla and SpaceX are currently evaluating the feasibility of the deal. The combined valuation of the two companies is estimated at approximately $3.5 trillion. No specific transaction terms have been established at this stage.

The progression of these discussions depends on several critical factors, including the approval of Tesla shareholders and oversight from regulatory bodies. External factors, such as Tesla’s operations in China and SpaceX’s defense contracts in the United States, may also impact the outcome.

Market participants are advised to monitor official filings and statements from both corporations. Future updates from the independent-director committees will serve as key indicators for the potential advancement or termination of the merger talks.