Bloomberg reported on Thursday that the merger between SpaceX and Tesla could be announced as early as December, which would become the largest corporate transaction in history.

The boards of directors and advisors of both parties are finalizing key terms, including the share exchange ratio for Tesla's investors, as well as the governance structure of the merged company. If the negotiations take longer, the announcement could be postponed until early 2027.

The merged group will combine Tesla's automotive, battery, and robotics businesses with SpaceX's rocket, satellite, and artificial intelligence businesses, with a combined valuation of approximately $3.4 to $3.5 trillion.

Elon Musk stated that this idea is "very valuable" and pointed out that both parties have collaborated in areas such as artificial intelligence chips, robotics, and orbital computing. However, due to potential conflicts of interest, an independent committee is reviewing this transaction.

Previous reports indicated that Musk hoped to complete the deal during President Trump's tenure, and this progress may accelerate now that the Democrats have won control of Congress.

However, there are still significant obstacles to overcome, including regulatory approval from China, as China accounts for approximately 20% of Tesla's revenue.