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Elon Musk says Tesla and SpaceX have formed independent committees to explore a merger

Musk said the special committees have not reached an agreement and a merger would need shareholder approval.

By Felo News Desk · Published

Elon Musk told investors during SpaceX’s third‑quarter earnings call on Tuesday that independent board committees at Tesla and SpaceX are reviewing a possible merger, but he cannot participate because he is a conflicted party.

What happened

During the Q&A portion of SpaceX’s earnings call, Musk explained that each company’s board has set up a special committee of independent directors to discuss a potential combination. He said the committees have not yet reached any agreement on terms and there is no guarantee they will. Musk added that any merger would require the support of both sets of shareholders.

What the reports add

Fortune reported that the two committees were formed after Musk was asked about a merger on the call and that Tesla’s after‑hours stock rose just over 1% while SpaceX’s shares jumped more than 5% following the discussion. NBC News noted that the merger idea has been the subject of “intense speculation” and highlighted that the companies already overlap in semiconductor manufacturing and that Tesla announced a $2 billion investment in an AI startup that is a SpaceX subsidiary in January. Ars Technica added that Musk described the merger as a "good idea" and referenced SpaceX’s acquisition of Musk’s AI firm xAI in February and its record‑size IPO in June as part of a busy year for the aerospace company.

What was said

"These special committees consist of independent directors, and because I’m a conflicted party, I can’t actually be in the discussions of the special committees," Musk told investors, as reported by Fortune.
"I think some people out there assume that a SpaceX and Tesla merger is a certainty, and I think that would be overstating it," he added, a quote that appears in both Fortune and NBC News.
Musk also said, "Do I think it would be a good idea? Yes," according to Ars Technica, while noting that the ultimate decision rests with shareholders.

How it came about

The merger discussion follows a series of cross‑company collaborations earlier this year. In January, Tesla announced a $2 billion investment in an AI startup that is a subsidiary of SpaceX. In February, SpaceX acquired Musk’s artificial‑intelligence firm xAI, and in June the company completed the largest IPO on record. Earlier this month, Musk unveiled the Tesla Roadster 2 flying‑car prototype at SpaceX’s Texas test site, a project that uses SpaceX thrusters, linking the two firms’ engineering efforts (Felo coverage).

Key facts

  • Tesla and SpaceX each formed a special committee of independent directors to discuss a possible merger (fortune.com)
  • Musk said the committees have not reached an agreement and a merger would need shareholder approval (nbcnews.com)
  • Tesla stock rose just over 1% and SpaceX stock rose more than 5% after the earnings call (fortune.com)
  • Musk described the merger as a "good idea" but not his decision (arstechnica.com)

Timeline

Sources

Earlier coverage

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