Elon Musk plots Tesla and SpaceX merger
Elon Musk says he is considering merging Tesla and SpaceX, a move that would combine companies worth around $3.5 trillion and create one of the world's largest corporate entities.
Elon Musk is actively considering merging Tesla and SpaceX, potentially bringing two of his biggest companies together in one of the largest corporate combinations in history.
Speaking during a call with financial analysts about SpaceX's quarterly results on Tuesday (20.10.26), the tycoon said he believed a merger could benefit both companies, although he stressed that no deal had been agreed.
Musk said: "Do I think it would be a good idea? Yes."
Special committees have been established at Tesla and SpaceX to examine a possible transaction.
Musk said the committees had not agreed terms and there was no guarantee a merger would go ahead.
He said: "But I do think there is a lot of merit to merging and a lot to be gained."
Tesla is currently valued at about $1.5 trillion, while SpaceX has a valuation of roughly $2 trillion.
A merger would therefore create a combined company worth around $3.5 trillion, potentially making it one of the biggest corporate deals ever.
SpaceX shares rose eight per cent in after-hours trading following Musk's comments, while Tesla shares gained about two per cent.
Musk said the companies could benefit from combining their work in areas including artificial intelligence, software and computer chips.
Their cooperation has already increased, including through Terafab, a joint effort to manufacture chips.
SpaceX has also expanded beyond rockets and Starlink satellite internet into computing infrastructure for AI companies. Its latest results showed $7.5 billion in revenue from its cloud-computing business, while Starlink generated $5.2 billion. SpaceX nevertheless remains loss-making, reporting a $1.1 billion loss so far this year.
The proposed merger would form part of a wider effort by Musk to consolidate his businesses.
Earlier this year, SpaceX acquired his AI company xAI and X, the social media platform formerly known as Twitter.
Musk said he was not part of either special committee because he is a "conflicted party" as chief executive of both Tesla and SpaceX.
He also acknowledged the difficulty of securing approval, saying at least 50 per cent of Tesla shareholders would need to support the deal.
Musk said: "Even commenting on it is like tap dancing through a minefield."
Any merger would add another major transformation to Tesla, where Musk has increasingly focused resources on robotics and AI rather than electric vehicles.
