Musk says backs SpaceX-Tesla merger as rocket firm turns profit

Elon Musk has stated that he would support a merger between SpaceX and Tesla following the rocket and AI company's first quarterly profit since going public. SpaceX reported a net income of $4.4 billion for the July-September period, a significant turnaround from a $1.1 billion loss a year prior. Revenue increased by 161% to $14.6 billion, driven by deals to rent out computing power to AI firms.

Musk described the potential tie-up as "a good idea," but acknowledged it as a "minefield" due to the conflict of interest he faces. Special committees of independent directors for both companies have been established to study the idea, but Musk emphasized that no terms have been agreed upon and there is no certainty of a deal. Any merger would require the backing of a majority of Tesla shares, a challenging hurdle.

Musk also highlighted potential synergies in AI software, chip design, robotics, and space-based computing between the two companies.