Musk Confirms SpaceX-Tesla Special Committee Weighs Merger; SpaceX Shares Jump 8%

Elon Musk confirmed on October 20 that SpaceX (SPCX-US) and Tesla (TSLA-US) have formed a special committee of independent directors to formally discuss a potential merger, calling the combination a "good idea." SpaceX shares rose 8% in after-hours trading on the news, while Tesla gained 1.8%. Terms have not been finalized, and completion remains uncertain. Musk said the companies see integration benefits across AI software, chip design, robotics and satellite communications, including a joint Terafab chip manufacturing project targeting a first test chip in 2027 and volume production in the third quarter of 2028. Because he holds large stakes in both companies, Musk said he will not personally participate in merger negotiations due to potential conflicts of interest. SpaceX's third-quarter revenue reached $14.58 billion, up 161% year over year. AI business revenue totaled $7.56 billion, roughly ten times the year-earlier level and about 52% of total revenue, surpassing Starlink for the first time, driven by data center computing rentals to customers including Anthropic, Alphabet (GOOGL-US) and Reflection AI. Third-quarter capital expenditure reached $19.6 billion, with fourth-quarter spending projected at $35 billion to $40 billion.