Elon Musk said he likes the idea of merging Tesla and SpaceX, his two best-known companies, and that it is being actively considered. UNN reports this, citing the BBC.
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"Do I think it would be a good idea? Yes," Musk said during a conversation with financial analysts about SpaceX's quarterly business results on Tuesday, October 20.
Although Musk said that such a merger should not be taken for granted and would require shareholder support, he said that special committees had been formed at both companies to study the move.
"The special committees have not reached agreement on the terms of any deal, and there is no guarantee that they will do so," Musk added. "But I think the merger has many advantages and a lot could be achieved."
With Tesla valued at approximately $1.5 trillion and SpaceX at $2 trillion, combining the two companies would become one of the largest mergers in history.
SpaceX shares rose 8% after the market closed.
The company, which builds space rockets and Starlink internet satellites, is now expanding by offering cloud computing capacity to other technology companies, such as Anthropic and Google.
This business line became SpaceX's most profitable segment, generating $7.5 billion, according to its latest quarterly results. Starlink also recorded revenue of $5.2 billion.
However, SpaceX as a whole is not profitable and has lost $1.1 billion since the beginning of the year.
Shares of Tesla, which will publish its own quarterly results on Wednesday, rose 2% after declining slightly over several weeks.
Over the past year, Musk has begun combining more of his various companies under fewer banners. Before SpaceX went public at the beginning of this year, it acquired xAI and X, the platform formerly known as Twitter, both of which were owned by Musk.
The recent launch of Terafab, a joint Tesla and SpaceX project to produce computer chips, was another signal that Musk sees his companies as potentially more efficient when working together, the publication notes.
On Tuesday, Musk said that a full merger of the two companies would make sense for the work each performs in chips, artificial intelligence, software and more.
Musk, who became the world's first paper trillionaire after SpaceX's stock-market debut at the beginning of this year, said that he is not a member of either of the special committees considering the mega-merger.
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He described himself as an "interested party" as the chief executive officer of Tesla and SpaceX.
Even while commenting on the possibility of merging the two companies, Musk compared it to "tap-dancing in a minefield."
He added that shareholders would ultimately decide on the merger. At least 50% of Tesla shareholders must approve the merger, which Musk called "a fairly high hurdle to clear."
Shareholders have supported Musk's wishes before. Last year, a majority of Tesla investors approved a compensation package for Musk worth approximately $1 trillion.
Although Tesla is known as an electric-vehicle manufacturer, Musk has recently been redirecting resources there to work on robotics.
SpaceX, with its growing focus on artificial intelligence infrastructure, quickly overtook Tesla in market value when it debuted on the stock market.
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