Elon Musk Calls Tesla–SpaceX Merger a 'Good Idea' as Both Boards Form Special Committees

Elon Musk speaking in front of a SpaceX rocket

File photo: Elon Musk at a SpaceX event

Elon Musk has publicly backed the idea of merging Tesla and SpaceX, telling analysts on SpaceX's third-quarter earnings call that combining the two giants would be a "good idea." Both companies have now formed special committees of independent directors to study a possible deal — which, based on current market values of about $2 trillion for SpaceX and $1.5 trillion for Tesla, could create a $3.5 trillion behemoth.

Musk, the largest shareholder of both companies, said he is recusing himself from the committees' talks because of the conflict of interest — "an odd kabuki dance," as he put it. He stressed that no terms have been agreed and a merger may never happen. The idea came "at the request of shareholders," and any deal would need approval from a majority of all outstanding Tesla shares — a high bar, since it counts shares that never vote.

Musk's case for the merger rests on shared work in AI software, robotics including the Optimus humanoid, chip design through the Terafab venture, and SpaceX's planned Starmind orbital AI data centers. The news sent SpaceX shares up 8.3% after hours following a strong quarter — revenue jumped 161% to $14.6 billion with a $4.4 billion profit. Tesla reports its own results after markets close on Wednesday, with all eyes on Musk's first analyst call since the merger talk went public.

Source: Mint

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