Elon Musk says Tesla and SpaceX are weighing a $3.5 trillion merger—without him in the room

Tesla and SpaceX are reportedly considering a $3.5 trillion merger, but Elon Musk, their CEO, is barred from participating in the discussions due to his conflict of interest. During SpaceX’s earnings call, Musk revealed that the decision lies with a committee of independent board members, who are weighing the potential merger without his presence.

The absence of Musk raises concerns about the possibility of a tie-up between the two companies, as he owns significant stakes in both organizations. Musk emphasized that the committees have not yet reached an agreement on the terms of a potential transaction, stating that the idea remains a speculation. He also highlighted the challenges he faces as a conflicted party, owning a substantial portion of both Tesla and SpaceX.

The companies are already financially intertwined, with a $2 billion investment by Tesla in SpaceX. Musk believes that a merger could bring benefits in areas such as AI software, chip design, robotics, and connectivity, including the shared Terafab chip plant. The talks have been ongoing for months, and a $3.5 trillion combined market value has been speculated.

However, a formal deal price would not be determined until much later, should the merger materialize.