Elon Musk has stated that he is actively considering a merger between his two largest companies, Tesla and SpaceX.
“Do I think it’s a good idea? Yes,” Musk said on Tuesday during a call with financial analysts to discuss SpaceX’s latest performance.
While noting that there is no guarantee the merger will proceed—and that it would require shareholder approval—Musk indicated that both companies have established special committees to explore the move.
“The special committees have not yet agreed on any terms for a deal, and there is no guarantee that they will ultimately reach an agreement,” he said. “But I do believe there are many merits to a merger, and that both sides could benefit from it.”
With Tesla’s market capitalization at approximately $1.5 trillion (£1.1 trillion) and SpaceX’s at roughly $2 trillion, a merger between the two would rank among the largest in history.
SpaceX manufactures space rockets and Starlink internet satellites; through its “Starshield” division, it also provides secure satellite networks to various governments, including that of the United States.
Currently, this segment of the business is under scrutiny following allegations that Ukraine’s access to the network was restricted, potentially leaving the country vulnerable to lethal strikes by Russia.
U.S. President Donald Trump has denied that either he or Musk ordered any slowdown in operations. Musk himself has suggested that the U.S. government may have been behind the restrictions.
For the three months ending September 30, Starlink’s total revenue grew to $5.2 billion, up from $3 billion in the same period last year. However, the scale of Starlink pales in comparison to SpaceX’s expansion into providing cloud computing capabilities to other technology companies, such as Anthropic and Google.
This business segment generated $7.5 billion in revenue over the three-month period, an increase from $813 million the previous year.
“Tap-dancing in a minefield”
Earlier this year, following a stock offering by SpaceX, Elon Musk became the world’s first person to see his paper wealth reach the trillion-dollar mark. He noted that he was not included in the two special committees tasked with evaluating this massive potential merger.
He described himself as a “conflicted party,” given his role as CEO of both Tesla and SpaceX.
When discussing the possibility of a merger between the two companies, Musk even likened it to “tap-dancing in a minefield.”
He added that the final decision on any merger would rest with the shareholders. Approval from at least 50% of Tesla’s shareholders would be required—a threshold that Musk described as “quite a high bar.”
Shareholders have previously supported Musk’s objectives. Last year, a majority of Tesla investors approved a compensation package for Musk valued at approximately $1 trillion.
Although Tesla is best known as an electric vehicle company, Musk has recently been shifting resources toward the field of robotics.
SpaceX, which focuses on artificial intelligence infrastructure, saw its market valuation quickly surpass that of Tesla following its public listing in June.
Although SpaceX’s revenue surged from $13.7 billion to $27 billion during the first nine months of this year, the company remains unprofitable overall.
During the same period, the company incurred a loss of $1.1 billion, even though it reported a profit of $4.4 billion for the most recent three-month stretch.
Following comments from Elon Musk, SpaceX shares rose 8% in after-hours trading. Tesla, which is set to announce its quarterly results on Wednesday, saw its stock price climb 2%.
Over the past year, Musk has been working to consolidate more of his companies under a smaller number of brands. Prior to a listing earlier this year, SpaceX acquired xAI and X (the platform formerly known as Twitter)—both of which were already owned by Musk.
Recently, Tesla and SpaceX jointly established a computer chip manufacturing company called Terafab—a move that further underscores Elon Musk’s belief that his two companies can operate more efficiently when they collaborate.
On Tuesday, Musk stated that a full-scale merger between the two companies would make sense, given their respective work in the fields of chips, artificial intelligence, and software.