Elon Musk says merging Tesla and SpaceX would be beneficial as special committees examine the deal

Musk signals support for a combined Tesla‑SpaceX entity Elon Musk, who serves as chief executive of both Tesla and SpaceX, told analysts that he believes a merger of the two companies would be advantageous. He described the prospect as having "a lot to be gained" and affirmed his personal view that it would be a good idea, while also stressing that the outcome depends on the work of specially appointed committees within each firm.

Committees tasked with evaluating a mega‑merger Both companies have set up internal committees to explore the feasibility of a union, according to statements made during a financial‑analyst call and a conference call with investors. Musk clarified that these groups have not yet reached any agreement on terms and that there is no certainty a deal will be concluded. He also noted that any transaction would require the approval of shareholders.

Scale of the potential combination Current market estimates place Tesla’s valuation at roughly $1.5 trillion and SpaceX’s at about $2 trillion. A merger would therefore create a conglomerate valued at around $3.5 trillion, making it one of the largest, if not the largest, mergers in corporate history.

Market reaction and financial backdrop Following Musk’s comments, SpaceX shares rose in after‑hours trading, with reports of an 8 percent increase and a 4.9 percent gain in extended trading. Tesla’s stock also edged higher, up about 2 percent after a period of modest decline.

SpaceX has recently posted its first profit as a public company and is tracking an annual revenue run‑rate that could approach $1 trillion, driven largely by its cloud‑compute services and satellite internet business. Revenue for the quarter ending 30 September jumped 161 percent to $14.58 billion, with artificial‑intelligence services generating roughly $7.5 billion and Starlink internet services contributing $5.2 billion. Despite these gains, the company has recorded a loss of $1.1 billion year‑to‑date.

Strategic synergies cited by Musk Musk highlighted overlapping areas such as chip development, artificial‑intelligence research, and data‑centre operations. Recent collaborative projects, including the launch of the Terafab chip‑manufacturing initiative and the unveiling of a Tesla Roadster equipped with SpaceX rocket thrusters, illustrate the practical integration of the two firms’ technologies.

Broader context of Musk’s consolidation efforts Over the past year, Musk has been consolidating his various enterprises, with SpaceX acquiring his own artificial‑intelligence startup xAI and the social‑media platform X (formerly Twitter) before SpaceX’s public listing. He has repeatedly linked the potential merger to his long‑term vision of establishing a self‑sustaining settlement on Mars, suggesting that a unified entity could accelerate progress toward that goal.

While the discussions are ongoing and no definitive terms have been set, Musk’s endorsement signals that a combined Tesla‑SpaceX operation remains a serious possibility, pending further analysis by the appointed committees and eventual shareholder consent.