Elon Musk says Tesla and SpaceX are weighing a $3.5 trillion merger—without him in the room
It’s official: Tesla and SpaceX are in talks. Independent board members at the two Elon Musk-led companies have formed special committees to hash over a possible merger, Musk told investors during SpaceX’s third-quarter earnings call Tuesday.
TL;DR
- Tesla and SpaceX boards have formed special committees of independent directors to discuss a possible merger.
- Elon Musk, CEO of both companies, is unable to participate in these discussions due to his conflicted role.
- Musk sees potential benefits in a merger, citing collaboration opportunities in AI software, chip design, robotics, and connectivity.
- The formation of these committees was requested by shareholders.
- A combined Tesla-SpaceX would have a market value of approximately $3.5 trillion.
- Tesla has an existing $2 billion investment in SpaceX, and there are overlaps in their boards.
- SpaceX reported its first operating profit since its IPO, with strong revenue growth, particularly in its AI business.
- Musk expressed optimistic projections for SpaceX's future revenue, while the CFO reaffirmed a target of $100 billion in annualized revenue by year-end.