Elon Musk Says Tesla and SpaceX Merger Is Under Consideration

Elon Musk said he supports the idea of merging two of his most notable companies, Tesla and SpaceX, and that both companies are actively considering the move.

“Do you think that’s a good idea? Yes,” Musk said Tuesday during a call with financial analysts about SpaceX’s quarterly results.

Tesla–SpaceX merger would require shareholder approval

Musk said the merger should not be considered certain and would require support from shareholders. He added that special committees have been established within both companies to evaluate the potential transaction.

“The task force has not reached agreement on the terms of any transaction and there is no guarantee that an agreement will be reached,” Musk said. “But I think there are a lot of benefits and a lot to gain from the merger.”

Tesla has an enterprise value of approximately $1.5 trillion, while SpaceX is valued at $2 trillion. If completed, the deal would be the largest merger in history.

SpaceX stock rises after merger comments

SpaceX stock rose 8% in after-hours trading following Musk’s comments.

The company develops space rockets and Starlink internet satellites. It is also expanding into cloud computing, providing computing power to technology companies including Anthropic and Google.

Cloud computing has become SpaceX’s most profitable business, generating $7.5 billion in its most recent quarterly results. Starlink reported revenue of $5.2 billion.

Despite that revenue, SpaceX as a whole is not profitable and has recorded a loss of $1.1 billion so far this year.

Tesla and SpaceX already share technology efforts

Tesla stock rose 2% after the company reported its quarterly results on Wednesday, following weeks of modest declines.

Last year, Musk worked to reduce the number of separate company banners under his umbrella and bring more businesses together. Before going public earlier this year, SpaceX acquired xAI and X, the platform formerly known as Twitter, both of which were owned by Musk.

The recent launch of TerraFab, a joint effort between Tesla and SpaceX to manufacture computer chips, was another sign that Musk believes his companies could become more efficient by working together.

Musk said Tuesday that a full merger would make sense because of the work the two companies have undertaken in areas including computer chips, artificial intelligence and software.