Elon Musk says SpaceX, Tesla have begun exploring merger, but warns deal not guaranteed

Elon Musk announced on Tuesday that SpaceX and Tesla are exploring the possibility of a merger, describing it as a "lot of merit" in combining the two firms. However, Musk clarified that the deal is not guaranteed and would depend on shareholder approval. The committees formed for exploring the merger have not yet agreed on terms and Musk is not participating due to his conflicted interest.

The potential merger could combine Tesla's electric vehicle, energy, and robotics businesses with SpaceX's rocket launch and satellite internet operations. Both companies are already heavily invested in artificial intelligence, with SpaceX working on superintelligence software and Tesla manufacturing utility-scale batteries. A merger between the two tech giants, estimated at a value of around US$2-1.5 trillion, would be the largest corporate tie-up ever.