Space X and Tesla exploring merger, CEO Elon Musk says
· Axios
SpaceX and Tesla have formed special committees to discuss a potential merger — and Elon Musk thinks "it's a good idea," the CEO of both companies said Tuesday.
Why it matters: SpaceX and Tesla have increasingly been collaborating on chips and AI projects — and Musk leads both companies — prompting widespread speculation that they could join forces.
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Driving the news: Musk said on SpaceX's earnings call that the two companies have formed committees of independent directors to explore the possibility of a deal.
- "Because I'm a conflicted party, I can't actually be in the discussions," he said, but he added that "I think it would be a good idea."
Zoom in: Musk said "there's a lot to be gained" from cooperation on technologies like AI, chips, robotics and connectivity.
- But he said a deal is not certain.
- "I think that would be overstating it," he said, noting that 50% of Tesla shareholders would need to approve the deal, which he called a high hurdle.
What they're saying: Tech analyst Gene Munster of Deepwater Asset Management said he believes there's a 95% chance a deal will take place in the next two years.
- "Believe me, shareholders would support this," Munster said Tuesday on X after Musk made his comments.
Of note: Any combination would be massive: SpaceX has a market cap of more than $2 trillion, while Tesla's is nearly $1.5 trillion.
- Tesla reports its quarterly results on Wednesday.
Editor's note: This story has been updated with additional details.