Elon Musk Suggests Merger Between Tesla and SpaceX

On Tuesday, Elon Musk shared that merging Tesla and SpaceX could be “a good idea.” He indicated that both companies have set up special committees comprised of independent directors to look into the possibility of such a deal. It’s a thought Musk has had before, mainly because he’s noticed an increasing overlap between the two companies.

After SpaceX’s quarterly earnings report, Musk spoke during a conference call with investors, which led to a surge in SpaceX’s shares—rising as much as 8% in after-hours trading.

“I think it would be a good idea, but it’s really up to the special committees of both companies,” Musk stated. “Because I’m a conflicted party, I can’t actually participate in their discussions.”

Musk mentioned that the committees were formed in response to shareholder interest, as any potential merger would ultimately require approval from them.

“There’s a lot to gain from combining these companies, especially as we’re essentially at the forefront of superintelligence,” Musk continued. He emphasized the potential benefits from collaboration in areas like software development, chip design, robotics, and connectivity with satellite networks.

Talks about the merger have gained traction, especially with Barclays suggesting that an announcement could come as soon as December. However, Musk tempered expectations by cautioning that it was still early to determine if the merger would actually happen.

Interestingly, this news came on the same day that SpaceX announced it had achieved its first profit as a publicly traded entity. Musk predicted that the company could see annual recurring revenue ranging from $500 billion to $1 trillion by the end of 2027. He holds a significant stake and voting power within SpaceX, which might influence the discussions ahead.

Earlier this week, Musk also made headlines by vowing to give every child in America one share of SpaceX next year, hinting that this could be just the beginning of such giveaways.

Meanwhile, Tesla has also been in the spotlight, having recently unveiled its highly anticipated next-generation Roadster—showcasing its unique features during a launch event.