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Elon 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.<\/b><\/p>\n
“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.<\/p>\n
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.<\/p>\n
“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.”<\/p>\n
With Tesla valued roughly $1.5 trillion and SpaceX valued at $2 trillion, a combination of the two companies would mark one of the largest mergers in history.<\/p>\n
Shares of SpaceX rose 8% in after hours trading. <\/p>\n
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.<\/p>\n
That line of business has become the most profitable part of SpaceX, bringing in $7.5bn according to the latest quarterly results. Starlink also tallied revenue of $5.2bn.<\/p>\n
SpaceX as a whole, however, is not profitable and has lost $1.1bn so far this year.<\/p>\n
Shares of Tesla, which reports its own quarterly results on Wednesday, rose 2% after being down slightly for weeks.<\/p>\n
Over the last year, Musk has taken to bringing more of his various companies under fewer banners. Before it went public earlier this year, SpaceX acquired xAI and X<\/a>, the platform formerly known as Twitter, both of which Musk owned.<\/p>\n The recent launch of Terafab, a combined effort to manufacture computer chips between Tesla and SpaceX, was another signal that Musk sees his companies as potentially more effective when working together.<\/p>\n 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.<\/p>\n<\/div>\n