Why does Elon Musk want to merge the companies?
Elon Musk is considering a merger between Tesla and SpaceX, which would create a combined entity valued at roughly $3.5 trillion. Musk claims special committees have been formed to assess the potential deal, though no formal agreement has been reached yet. The move aims to combine Tesla's automotive and AI capabilities with SpaceX's aerospace and telecommunications infrastructure.
Why it matters
A merger between Tesla and SpaceX would represent the largest corporate combination in history, significantly altering the landscape of transportation, space exploration, and artificial intelligence under a single umbrella.
Share Save Add as preferred on Google Osmond Chia Business reporter Getty Images/Reuters Elon Musk has spent years building Tesla and SpaceX into a pair of trillion-dollar technology empires. Now, he is considering bringing them together .
Asked on Tuesday whether a merger would be a good idea, Musk was clear: "Yes."
The prospect is more than hypothetical. Musk said special committees have been formed to assess a potential deal, although he stressed that there is no guarantee a merger will happen and that nothing has been agreed.
With Tesla valued at roughly $1.5 trillion (£1.1 trillion) and SpaceX at $2 trillion, a combination of the two companies would mark the largest merger ever.
Any deal would also need shareholder backing. But Musk said he saw "a lot to be gained" in bringing the businesses together.
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