Musk backs Tesla-SpaceX merger idea

Elon Musk said on Tuesday he thinks merging Tesla and SpaceX would be a good idea and it is under active consideration. Special committees at both companies are examining the move.

“Do I think it would be a good idea? Yes”

Scale of the potential deal

With Tesla valued at roughly one point five trillion dollars and SpaceX valued at two trillion dollars, a combination would mark one of the largest mergers in history.

SpaceX's profitable cloud business

SpaceX's cloud compute capacity for tech companies like Anthropic and Google brought in seven point five billion dollars in the latest quarterly results. Starlink revenue was five point two billion dollars.

Musk's conflict and shareholder hurdle

Musk described himself as a conflicted party and is not on either special committee. He said at least fifty percent of Tesla shareholders would need to approve the merger, which he called quite a high…

“quite a high hurdle to achieve”

No guarantee of deal completion

Musk cautioned that the special committees have not reached agreement on terms and there is no guarantee they will. He said shareholders would ultimately decide whether a merger happens.

“The special committees have not reached agreement on terms of any transaction and there's no guarantee that they will”