A merger announcement involving Tesla and SpaceX, two of Elon Musk’s key companies, could come by December, according to financial industry projections.

Bloomberg and financial news platform Stocktwits reported on Oct. 14, citing a Barclays client report, that the merger could be formally announced before Tesla’s annual general meeting (AGM). Tesla must hold its AGM by Dec. 6.

Barclays said an announcement could come as early as late October or early November, although securing shareholder approval at the AGM could become increasingly difficult under that timeline. The most likely structure would involve SpaceX acquiring Tesla in an all-stock transaction. SpaceX is currently valued at about $2.1 trillion, compared with Tesla’s market capitalization of about $1.5 trillion, implying an exchange ratio of approximately 0.7 SpaceX shares for each Tesla share.

SpaceX is expected to be the acquiring entity because of its dual-class voting structure. Musk currently owns about 48% of SpaceX’s equity but controls approximately 82% of its voting rights. Barclays estimates that he would hold about 37% of the combined company’s equity and 56% of its voting rights after the merger, retaining majority voting control.

The transaction would still require shareholder approval from both companies and regulatory clearance under antitrust laws. Barclays sees little likelihood of opposition from the boards. However, protecting Tesla’s minority shareholders could become a key issue, given Musk’s substantially greater voting control at SpaceX than at Tesla.

Barclays emphasized that the merger’s primary value would lie in the vertical integration of technologies, including artificial intelligence (AI), rather than financial synergies. While financial benefits are also expected, the companies already collaborate in batteries, manufacturing and the Terafab AI semiconductor fab. Even if its near-term forecast proves incorrect, Barclays expects a merger announcement within six to 12 months and completion of the transaction during the Trump administration, citing the administration’s favorable stance toward such deals.