Tesla-SpaceX Merger Being Considered

Elon Musk says a merger between Tesla and SpaceX is under active consideration, with special committees at both companies evaluating a deal that could combine businesses valued at roughly $3.5 trillion. "Do I think it would be a good idea? Yes," Musk said during a call with financial analysts over the quarterly business results of SpaceX on Tuesday. The BBC reports: While Musk noted the certainty of such a merger should not be assumed, and it would need shareholders' support, he said special committees within both companies have been formed to examine the move. "The special committees have not reached agreement on terms of any transaction and there's no guarantee that they will," Musk added. "But I do think there is a lot of merit to merging and a lot to be gained." [...] The company, which builds space rockets and Starlink internet satellites, is now expanding into offering cloud compute capacity for other tech companies, like Anthropic and Google. That line of business has become the most profitable part of SpaceX, bringing in $7.5bn according to the latest quarterly results (PDF). Starlink also tallied revenue of $5.2bn. SpaceX as a whole, however, is not profitable and has lost $1.1bn so far this year. [...] Musk said on Tuesday a full merger between the two companies would make sense for the work each is doing around chips, artificial intelligence, software and more. He described himself as a "conflicted party" as the chief executive of Tesla and of SpaceX. Even commenting on the possibility of a merger between the two companies, Musk compared to "tap dancing through a minefield." He added a merger would ultimately be decided by shareholders. At least 50% of Tesla's shareholders would need to approve the merger, which Musk described as "quite a high hurdle to achieve."

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