When one person runs two of the world’s most talked-about companies, the question of putting them together was always going to come up. Elon Musk has now said that a SpaceX and Tesla merger is under evaluation. He made the remark during the presentation of SpaceX’s third-quarter results, and nothing has been decided.
What Musk actually said
Musk, CEO of both companies, said SpaceX and Tesla have each formed special committees to look at the possibility of a merger. According to CNN, the committees are made up of independent directors, and Musk can’t take part in the negotiations because he is a stakeholder. He said there is “a lot of merit” in combining the two, pointing to potential gains from working together on AI software, chip design and robotics.
How closely the two are already linked
The companies already overlap in several ways. Tesla executives sit on SpaceX’s board. Tesla also invested $2 billion in xAI, and after SpaceX acquired the AI company, that stake converted into shares in the aerospace firm. Details of those deals are worth following in technology news updates as the story develops.
What a deal would need
Fortune notes that Musk holds 82% of SpaceX’s voting rights, so a decision on that side looks relatively easy to predict. On Tesla’s side, approval would must support from 50% of all shareholders. The combined company would be valued in the trillions of dollars, according to the report, and Musk would gain more control over operations, especially at Tesla.
Still an open question
The status of the talks isn’t clear. Musk’s comments describe an evaluation, not an agreement, so any outcome remains uncertain. We’ll have to wait for more details. Those who follow technology companies and their shifting structures will want to keep an eye on how this one plays out.
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