Key facts
- Musk believes a merger would create a single company spanning AI, energy, robotics, communications, and transportation.
- A combined company could be valued at about $3.5 trillion.
- SpaceX reported its first profit as a public company, with surging AI revenue.
Elon Musk said Tuesday that SpaceX and Tesla have begun discussions regarding a potential merger, forming special committees to explore the union. Musk believes the combination would create a single, integrated technology and manufacturing empire spanning AI, energy, robotics, communications, and transportation, potentially valued at $3.5 trillion. The news sent shares of SpaceX up 8% in extended trading, while Tesla shares rose more than 1%. Analysts suggest the merger makes sense due to existing synergies and potential for greater efficiencies, with SpaceX's Starlink potentially providing communications for Tesla's autonomous systems and robots, and Tesla's battery expertise supporting SpaceX's data-center projects. The companies are also collaborating on the Terafab semiconductor and AI-computing project.