Tesla and SpaceX have formed special committees to consider a merger, which would combine the two businesses. Elon Musk announced the discussions on 20 October during a call about SpaceX's financial results. The committees consist of independent board members and were established at shareholders' request. Although Musk leads both companies and supports the idea, his interests in both businesses prevent him from taking part in their talks.
The committees have not agreed on any terms, and Musk warned that a deal is not certain. Approval at Tesla would require support from a majority of all its shares, rather than simply a majority of those voted. Based on closing share prices on 20 October, the combined businesses would have a market value of about $3.5 trillion. That figure is not an agreed deal price.
Musk said cooperation could benefit AI software, computer chip design and robotics. His comments came as SpaceX announced a $4.4 billion profit for July to September. Its AI business helped drive the return to profit, including through agreements to rent computing power to other companies. These services allow customers to use SpaceX's computers for their AI work.
