‘A good idea’: Elon Musk says special committees will discuss Tesla and SpaceX merger while he sits out
Two of the most valuable companies in the world are exploring a potential merger. Tesla CEO and founder of SpaceX, Elon Musk, on Tuesday said that they had formed special committees to discuss the merger between the two entities. While the size of the deal has not been officially announced, SpaceX is worth about $2 trillion, and Tesla is worth nearly $1.5 trillion, making the combined entity worth at least $3.5 trillion. SpaceX is currently the 7th most valuable company in the world, while Tesla sits in the 11th spot.
"I think it would be a good idea, but it's really up to the special committees of both companies," Musk was quoted as saying by Reuters. Sharing further details about the potential merger, Musk said the special committees would discuss the matter while he sits out.
"Because I'm a conflicted party, I can't actually be in the discussions of the special committees," which comprised independent directors, he told investors on a conference call, according to Reuters.
“The companies had formed the special committees at the request of shareholders, who ultimately would need to approve a deal,” the world’s richest man added.
As the CEO of both companies, Musk owns around a 20% stake in Tesla and 45% of SpaceX. Musk controls about 82% of SpaceX's voting power and would own about a third of the combined entity if the merger goes through.
Tesla was founded in 2003 by Martin Eberhard and Marc Tarpenning and Musk joined the EV-maker as the lead investor in 2004. He was officially recognized as co-founder in 2009 as part of a legal settlement. Tesla’s vehicle portfolio included passenger electric cars, autonomous vehicles, semi-trucks and Robo-taxis. Tesla recently unveiled its latest offering, the Roadster, a high-performance sports car that can ‘fly’.
SpaceX was founded in 2002 by Musk and currently operates under three segments: space missions, satellite internet services through Starlink, and AI under xAI.
Musk pointed out the benefits of combining the two entities.
"I do think there's a lot of merit to combining the companies as we are pretty much in the superintelligence singularity, and there's a lot to be gained from cooperating on developing superintelligence software, chip design, the Terafab obviously, robotics, mass-to-orbit with the Starmind constellation, connectivity," he said.
Terafab, the chip manufacturing joint venture between the two companies, should produce its first test chip around May or June of next year and aims to reach volume production by the third quarter of 2028, Musk said.
He, however, made it clear that it would be premature to assume a SpaceX-Tesla merger would happen, noting that the special committees had not agreed on transaction terms and may never do so.
(With inputs from agencies)
Bobins loves telling the human side of all stories, from the intersection of geopolitics, international relations, and conflicts around the world. In his nearly one-and-a-half-decade career as a journalist, Bobins has covered South Asia, the Middle East, and North America, from elections to mass protests and conflicts. <br> Bobins has also done extensive reporting on environmental issues, climate change, and sustainability, focusing on solutions and people working to make the planet a better place to live. <br> In 2018, Bobins was awarded by Times Internet for the impact of his story on Delhi tree cuttings. Bobins also loves telling the stories of Indian startups and the journey of their founders. <br> Total Years of Experience: 14 <br> Years of experience at LM: Bobins has been a part of Live Mint since February 2026 <br> Interests: When he is not tracking conflicts, Bobins loves to cook, travel across India, click photos, and watch documentaries on history. Past Experience: Before joining Live Mint, Bobins worked with The Indian Express, where he led the Global Breaking News coverage, Indiatimes, where he led the news team, covering everything trending, ANI, where the focus of his coverage was South Asia, and NBS News. <br> Current Role: Bobins is currently working as an Assistant Editor at Live Mint.
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