SpaceX, Tesla boards study possible $3.5 trillion merger
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓SpaceX and Tesla boards are studying a possible $3.5 trillion merger.
- ✓Elon Musk said Tuesday that special committees of independent directors are considering the combination.
- ✓“There’s a lot of merit to combining the companies,” Musk said.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Business Line
- Reading Speed
- 6 Minute(s)
- Market Focus
- India Economy
Elon Musk openly endorsed the prospect of combining SpaceX with Tesla Inc. in what would be the biggest-ever corporate merger, uniting assets from electric cars to AI data centers to rocket and satellite capabilities.
The world’s richest man said Tuesday the boards of both companies had formed special committees of independent directors to consider the idea of a combination. “There’s a lot of merit to combining the companies,” Musk said on a conference call after SpaceX announced earnings that beat estimates.
SpaceX is valued at $2 trillion, while Tesla has a market value of about $1.5 trillion. When asked on the call about the prospects of merging the two companies, Musk initially said he was “tap dancing through a minefield” before going into more detail. He cautioned that getting enough support from Tesla shareholders may be tricky and that neither committee has settled on terms.
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