Musk Weighs Mega‑Merger of Tesla and SpaceX, Forms Special Committees

Elon Musk said he is actively weighing a merger of his two flagship firms, Tesla and SpaceX. He told financial analysts on a call about SpaceX’s latest results that he sees merit in combining the companies, though he warned that a deal would need shareholder approval and is not guaranteed. Special committees have been set up within both firms to study the proposal, but they have not yet agreed on any terms. Musk, who is chief executive of both firms, said he is not part of the committees and called himself a "conflicted party". He compared the idea to "tap dancing through a minefield". Tesla is valued at roughly $1.5 trillion, while SpaceX’s market value sits around $2 trillion, making a combined entity one of the largest mergers ever. SpaceX’s Starlink business posted $5.2 billion in revenue for the quarter ending 30 September, up from $3 billion a year earlier, and its broader cloud‑compute arm earned $7.5 billion, a jump from $813 million last year. Overall, SpaceX’s revenue rose to $27 billion in the first nine months of the year, though it posted a $1.1 billion loss. After Musk’s comments, SpaceX shares jumped 8 % in after‑hours trading and Tesla shares rose 2 %. At least 50 % of Tesla shareholders would have to back the merger, a hurdle Musk said is "quite high". A majority of Tesla investors previously approved a compensation package for Musk worth about $1 trillion, showing past support for his plans. ## Context A merger of this size would link Tesla’s electric‑vehicle and robotics work with SpaceX’s rockets, satellite internet and growing AI‑compute services, potentially creating a powerful tech conglomerate that could dominate multiple high‑growth markets.