Tesla, SpaceX Form Special Committees to Explore Merger; TSLA Jumps 8% After Hours

Elon Musk said Tuesday that merging SpaceX and Tesla is "a good idea," disclosing that both companies have formed special committees to discuss the combination. Tesla (TSLA) shares rose 8% in after-hours trading following the remarks. eToro analyst Josh Gilbert said the deal would be the largest merger in market history, with a combined value of about $3.5 trillion. He said the logic is clear given both companies' heavy ties to artificial intelligence, but warned the transaction faces high hurdles, including governance scrutiny over one person controlling both firms even if Musk recuses himself from the committees. Zacks strategist Brian Mulberry said a merger has long been a known possibility and both companies appear to be building the case around existing synergies, though shareholder approval from both firms is still required. Fortuna Investments CEO Justus Parmar said the combination would create a single vehicle for Musk exposure, reduce duplicated operations and administrative costs, and let Tesla's high-margin, cash-generating auto business—with Robotaxi growth ahead—fund capital-intensive SpaceX programs.