Tesla, SpaceX Boards Form Committees to Study $3.5 Trillion Merger

Elon Musk said Tuesday that the boards of Tesla and SpaceX have each formed special committees to study a merger that would combine rockets, electric cars, humanoid robots, a social network and the Grok chatbot into a single company worth roughly $3.5 trillion. Tesla shares rose almost 4% after his remarks; SpaceX rose 10%. Musk, speaking on SpaceX's third-quarter earnings call, cited "merit to combining the companies" amid the AI "singularity," listing shared superintelligence software, chip design, the Terafab factory, robotics, the Starmind satellite constellation and connectivity. No agreement has been signed, and he cautioned that treating a deal as certain "would be overstating it." SpaceX reported quarterly revenue of $14.58 billion, above the $12.72 billion analysts expected, and booked its first profit since its June IPO, aided by renting AI server capacity to firms including Anthropic and Google. Barclays estimates Musk would control about 56% of votes in a combined company; any deal needs approval from 50% of all outstanding Tesla shares.