Elon Musk backs SpaceX-Tesla merger as rocket firm turns profit
Elon Musk has expressed support for a potential merger between SpaceX and Tesla after SpaceX reported its first quarterly profit since going public, driven largely by AI computing power deals. Special independent committees have been established at both companies to evaluate the idea, though significant regulatory and shareholder hurdles remain.
Why it matters
A merger between two of Musk's most prominent companies would combine major players in aerospace, electric vehicles, and artificial intelligence, reshaping the tech and automotive landscapes.
Elon Musk said on Tuesday that he would back a merger of SpaceX and Tesla, as his rocket and AI company reported its first quarterly profit since going public, driven by deals to rent out computing power to AI firms.Asked about a possible tie-up on a call with analysts, Musk said he felt he was “tap dancing through a minefield”, but that a combination would be “a good idea”.Shares in SpaceX shot up nearly 5% in after-hours trading following the comments.Musk said special committees of independent directors at both SpaceX and Tesla had been established to study the idea at the request of shareholders.He added that he could not take part in their talks because he had a conflict of interest.Musk is chief executive of both companies and also serves as chairman and chief technology officer of SpaceX.He owned 48.4% of SpaceX as of 30 June, according to a regulatory…
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