Pakistan, Nov. 12 -- Tesla and SpaceX are reviewing a possible merger that could bring both companies under one corporate structure. The Elon Musk-led companies have each established special committees to examine a potential all-stock deal. Such an arrangement would allow the companies to combine without either side making a cash payment. However, the proposal could significantly change ownership stakes for existing shareholders.

In an all-stock merger, the acquiring company issues new shares instead of paying cash to purchase another business. Shareholders of the acquired company receive a predetermined number of shares based on an agreed exchange ratio. The transaction increases the total number of shares in the combined company. Conse...