Tesla and SpaceX Establish Special Committees to Evaluate Potential Merger, Musk Says

Tesla and SpaceX have formed independent special committees to assess a possible merger, according to Elon Musk, who leads both companies.

Musk described the merger as “a good idea,” but emphasized that he cannot participate in the committees’ discussions due to his conflicted position as a major shareholder in both firms.

The committees were established at shareholder request, as any potential merger would require approval from stockholders of both companies.

During a conference call with investors following SpaceX’s quarterly earnings report, Musk highlighted strategic synergies between the companies, citing areas such as superintelligence software development, chip design, robotics, and satellite connectivity through the Starlink constellation.

SpaceX shares rose as much as 8% in extended trading after the earnings release and Musk’s comments.

Speculation about a potential acquisition has grown recently, with Barclays suggesting a deal could be announced as early as December, though Musk cautioned that it remains too early to determine whether a merger will ultimately proceed.

The potential combination coincides with SpaceX reporting its first profit as a publicly traded company, with Musk projecting annual recurring revenue of $500 billion to $1 trillion by 2027.

Earlier this week, Musk pledged to distribute one share of SpaceX to every child in America next year, describing the initiative as potentially the first in a series of programs.

Tesla has also attracted attention after unveiling its next-generation Roadster earlier this month, featuring a demonstration where the vehicle used compressed-air thrusters to launch off a ramp and perform a midair maneuver.

Reuters contributed to this report.

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