SpaceX and Tesla Launch Merger Review, Eyeing $3.5 Trillion Combined Entity

SpaceX and Tesla have each formed independent special committees to evaluate a potential merger, SpaceX CEO Elon Musk confirmed at the company's third-quarter earnings call on Tuesday. Musk is recusing himself from talks due to a conflict of interest, and no deal terms have been set. At current valuations of roughly $2 trillion for SpaceX and nearly $1.5 trillion for Tesla, a combination would create a technology group worth about $3.5 trillion. SpaceX shares rose about 8% after hours and Tesla gained 1% to 2%. The deal remains far from certain: Tesla requires approval from holders of more than 50% of all outstanding shares. SpaceX reported third-quarter revenue of $14.575 billion, up 161% year over year, with net income of $4.404 billion, reversing a year-earlier loss. Adjusted EBITDA reached $8.809 billion. Its superintelligence business posted $7.56 billion in revenue, surpassing Starlink for the first time at over half of total revenue. Capital spending hit $19.593 billion for the quarter, up 185%, driven by computing infrastructure, the Terafab chip plant and Starship development.