In brief
Elon Musk has signalled his support for a merger between Tesla and SpaceX, a proposal currently being examined by special committees at both firms. Musk confirmed the concept is appealing but stressed that it is not guaranteed and would need fresh shareholder approval, with a 50% threshold for both companies. The combined valuation would exceed $3.5 trillion, making it one of the world’s largest corporate deals. Musk will not participate in the committees due to his executive roles, leaving the decision to outside stakeholders. The merger remains under active consideration, with more details expected as the process unfolds.
Musk has said he likes the idea of a merger of Tesla and SpaceX, two of his most notable companies, and it is under active consideration.
"Do I think it would be a good idea? Yes," Musk told analysts during a call about SpaceX’s quarterly results on Tuesday.
He cautions that a deal is not certain, would require shareholder approval and that special committees at both companies are evaluating the proposal.
"The special committees have not reached agreement on terms of any transaction and there's no guarantee that they will," Musk added, while noting that a merger could unlock significant synergies.
With Tesla valued at roughly $1.5 trillion and SpaceX at $2 trillion, a combined entity would rank among history’s largest corporate deals.
Musk explained that, due to conflicts of interest, he sits outside the committees, and shareholders would need to approve the deal with at least a 50% vote.
The discussion is ongoing and will be reassessed once a formal proposal is made.
Please refresh for the complete update.
