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SpaceX and Tesla Have Formed Committees to Discuss Potential Merger, Musk Says
Musk said the companies’ independent directors will weigh a deal that could unite their AI, chip and robotics businesses, with Tesla shareholders facing a high approval bar.
- Elon Musk announced that Tesla and SpaceX have formed "special committees of independent directors" to explore a potential merger, though he cannot participate due to conflicts of interest.
- SpaceX and Tesla have increasingly collaborated on chips, robotics, and connectivity, prompting the current exploration of a formal combination between the two companies.
- A combination would be massive, with SpaceX valued at more than $2 trillion and Tesla at nearly $1.5 trillion; Musk noted clearing the required 50% shareholder approval would be "quite a high hurdle."
- Tech analyst Gene Munster of Deepwater Asset Management believes there is a 95% chance a deal occurs in the next two years, saying "Believe me, shareholders would support this."
- Barclays previously suggested a potential combination could be announced ahead of Tesla's annual shareholder meeting on December 3, 2026, though Musk emphasized the committees have not reached agreement on terms.
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Elon Musk is open to a merger between his companies Tesla and SpaceX. The CEO said this on Tuesday during a webcast in which aerospace and AI company SpaceX reported a quarterly profit for the first time since its IPO.
·Kobbegem, Belgium
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Musk says SpaceX-Tesla merger is 'a good idea' as companies form deal committees
Elon Musk said on Tuesday that a merger of his two companies SpaceX and Tesla would be "a good idea" and that they had formed special committees to discuss a union, sending shares of the space and technology company up 8% in extended trading. The company earlier posted its first profit as a public company and Musk said he expected annual recurring revenue of between $500 billion and $1 trillion by the end of 2027, as demand for its data-center s…
·Seoul, Korea (the Republic of)
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Total News Sources105
Leaning Left18Leaning Right18Center27Last UpdatedBias Distribution43% Center
Bias Distribution
- 43% of the sources are Center
43% Center
L 29%
C 43%
R 28%
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