Musk backs possible Tesla-SpaceX merger as both firms form committees
Elon Musk said Tesla and SpaceX have set up special committees to explore a merger, though no agreement has been reached. Speaking on SpaceX’s earnings call, he said the deal would need approval from half of Tesla’s shareholders. SpaceX reported strong quarterly revenue growth, driven by Starlink and AI operations.
SpaceX’s second public quarterly update showed revenue of $14.58bn, beating analyst estimates of $12.72bn, with year-over-year growth of 161%. Net income reached $4.4bn and earnings per share were 35 cents; the stock rose 2% after hours following an 8% year-to-date decline.
Musk said independent directors on both companies’ special committees are examining a possible combination, while he is not participating because of his conflicting roles. He noted that any deal would need support from half of Tesla’s shareholders, and no terms have been agreed.
A merger could reshape how investors value Musk-linked firms and may concentrate control over satellite internet, rockets, AI, and electric vehicles. Tesla shareholders, SpaceX employees, Starlink customers, and public agencies relying on connectivity could face changes in governance, pricing, or service priorities. Regulatory scrutiny may increase, and any disruption to essential communications could affect civilians and military users.