Tesla and SpaceX weigh merger, with terms still undecided
Musk backs a combination but says an agreement is not assured. Shareholders would need to support any proposal.
Special committees at Tesla and SpaceX are assessing a possible merger, Elon Musk told investors on October 20. Speaking on SpaceX's third-quarter earnings call, he said independent directors were examining the transaction but had not agreed on terms.
Although Musk favors bringing the companies together, he cautioned that negotiations could end without a deal. He said his positions at the two businesses present a conflict of interest, keeping him outside the discussions. Any proposal would also need approval from shareholders.
The transaction would put Tesla's operations in electric vehicles, energy and robotics alongside SpaceX's rocket, satellite internet and AI businesses. Musk identified joint work on superintelligence software as one argument for combining them.
The companies already collaborate on Terafab, an advanced chipmaking venture. Musk has described it as a means of providing processors for space computing, autonomous vehicles and humanoid robots. SpaceX also absorbed xAI in February, a transaction linked to his ambition to establish AI data centers in orbit.
SpaceX reported US$4.4 billion in quarterly profit and roughly US$14.6 billion in revenue. Revenue increased 161% from a year earlier. Its AI business led revenue generation, while Starlink was the largest contributor to profit.
After the results, late trading saw SpaceX shares rise nearly 5%, while Tesla gained just over 2%.
