Tesla-SpaceX Merger Being Considered

Elon Musk has indicated that a merger between Tesla and SpaceX is currently under active consideration, with specialized committees at both companies evaluating the potential deal. The combined value of the two businesses is estimated to be around $3.5 trillion. Musk expressed his belief that a merger would be beneficial during a call with financial analysts discussing SpaceX's quarterly results. However, he clarified that the certainty of such a merger should not be assumed and that it would require shareholder approval.

Special committees within both companies have been formed to examine the possibility of the merger, but no agreement on terms has been reached. Musk stated that the final decision will ultimately be made by shareholders, with Tesla requiring at least 50% approval for the merger to proceed. Despite being the CEO of both companies, Musk acknowledged the complexity of the situation, comparing it to "tap dancing through a minefield."

The merger would consolidate work in areas such as chips, artificial intelligence, and software. SpaceX, which is currently not profitable, reported $7.5 billion in revenue from cloud compute capacity and $5.2 billion from Starlink internet satellites.