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 space surges thanks to the AI boom. Musk has in the past tantalized shareholders with the idea of combining SpaceX and Tesla, citing growing overlap between them. Speculation about the space company buying the EV maker has gained traction recently, with Barclays suggesting last week that a deal could be announced before Tesla's annual meeting in December. "I think it would be a good idea, but it's really up to the special committees of both companies," Musk said in the first official confirmation that the companies were formally talking. "Because I'm a conflicted party, I can't actually be in the discussions of the special committees," which compr