Musk says a Tesla–SpaceX merger is under consideration as both boards set up special committees
A deal combining Tesla (about $1.5 trillion) and SpaceX (about $2 trillion) would be one of the largest mergers ever. Musk says no terms are agreed and shareholders would have to approve, but he sees 'a lot of merit' in it.
Elon Musk said on Tuesday that a merger between Tesla and SpaceX is being actively considered. 'Do I think it would be a good idea? Yes,' he said on SpaceX's quarterly results call with analysts, adding that special committees have been formed at both companies to examine the idea.
'The special committees have not reached agreement on terms of any transaction and there's no guarantee that they will,' Musk cautioned, noting that any deal would need shareholder support. 'But I do think there is a lot of merit to merging and a lot to be gained.' He argued that a combination would make sense for the companies' overlapping work on chips, artificial intelligence and software.
With Tesla valued at roughly $1.5 trillion and SpaceX at about $2 trillion, the deal would rank among the biggest mergers in history. SpaceX, which listed earlier this year after absorbing xAI and X, said its cloud computing business for companies such as Anthropic and Google brought in $7.5bn in the quarter, its most profitable line, while Starlink generated $5.2bn. The company as a whole has lost $1.1bn so far this year.
Tesla shares rose about 2% after the comments. The carmaker reports its own quarterly results on Wednesday. The two companies already cooperate on Terafab, a joint chip-manufacturing project.