Elon Musk, the top executive of both Tesla and SpaceX, has expressed his support for a potential merger between the two companies, stating that it is currently under active consideration. During a call with financial analysts regarding SpaceX's quarterly business results on Tuesday, Musk remarked,
“"Do I think it would be a good idea? Yes."
While he emphasized that the certainty of such a merger should not be assumed and that it would require shareholder approval, Musk revealed that special committees within both companies have been established to explore the possibility. He added,
“"The special committees have not reached agreement on terms of any transaction and there's no guarantee that they will. But I do think there is a lot of merit to merging and a lot to be gained."
Potential Impact of the Merger
With Tesla valued at approximately $1.5 trillion and SpaceX at $2 trillion, a merger would represent one of the largest in history. Following Musk's comments, shares of SpaceX rose 8% in after-hours trading. SpaceX, known for building space rockets and Starlink internet satellites, is also expanding into cloud computing services for tech companies like Anthropic and Google. This new line of business has become the most profitable segment for SpaceX, generating $7.5 billion according to the latest quarterly results, while Starlink contributed $5.2 billion in revenue. However, SpaceX remains unprofitable, having lost $1.1 billion so far this year.
