Elon Musk Says Tesla and SpaceX Merger Is Being Considered

Elon Musk is thinking about joining two of his companies, Tesla and SpaceX. According to BBC News, Musk said yes on Tuesday when he was asked whether a merger would be a good idea.

Musk said that special committees have been formed to look at a possible deal. He also stressed that there is no guarantee a merger will happen and that nothing has been agreed yet. Musk is the chief executive of both companies.

Tesla is valued at roughly $1.5tn (£1.1bn), while SpaceX is valued at $2tn (£1.5bn). If the two were combined, it would be the largest merger ever. Musk said he saw a lot to be gained from bringing the businesses together.

A deal would need the backing of shareholders, the people who own shares in a company. Half of Tesla's shareholders would need to support it. Musk cannot take part in shareholder discussions because he is the chief executive of both companies.

Dan Sheehan of Telos Wealth Advisors believes shareholders will back the deal. David Nicholson, Chief Technology Advisor at The Futurum Group, said he believes the merger is 100% likely, and that the only question is when it will happen.

The combined company would bring together Tesla's cars, robots and self-driving technology with SpaceX's rockets, data centres, satellites and telecommunications operations. The merger could also be a step towards Musk's mission to build a self-sustaining city on Mars.

The news comes after some recent developments. Over the past year, SpaceX acquired xAI and X, which was formerly known as Twitter. SpaceX went public this year. Last week, the Tesla Roadster was unveiled, a futuristic electric car powered by SpaceX rocket thrusters.

Tesla has said it would prioritise its Model Y and Model 3 cars this year. The company has also started using a California plant to produce humanoid robots called Optimus. BYD overtook Tesla as the world's biggest electric vehicle maker in January.

A merger would also give Musk greater voting control over the combined company than he has at Tesla. Last year, Tesla investors approved a compensation package for Musk valued at around $1tn. After the news, SpaceX shares rose 8% in after-hours trading, while Tesla shares climbed 1.5%.