Space X and Tesla exploring merger, CEO Elon Musk says

SpaceX and Tesla are exploring the possibility of merging, according to CEO Elon Musk. Musk, who leads both companies, believes the merger would be beneficial, stating that the two firms have formed committees of independent directors to discuss the potential deal. While Musk cannot personally participate in the discussions due to his conflicted interest, he expressed his support for the merger, saying, "I think that would be a good idea."

Musk noted that there are numerous advantages to cooperating on technologies such as AI, chips, robotics, and connectivity. However, he also mentioned that the merger is not certain, as 50% of Tesla shareholders would need to approve the deal, which he considered a high hurdle.

Tech analyst Gene Munster of Deepwater Asset Management believes there's a 95% chance a deal will occur within the next two years, expressing confidence that shareholders would support the merger. If a combination were to take place, it would be massive, as SpaceX's market cap exceeds $2 trillion, while Tesla's is nearly $1.5 trillion.

Tesla's quarterly results are set to be released on Wednesday, providing further insights into the company's financial health and future prospects.