Tesla merger is 'a good idea' as companies form deal committees
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Elon Musk said on Tuesday that a merger of SpaceX and Tesla would be "a good idea" as companies form deal committees.
- ✓He noted that special committees are now talking about a union.
- ✓Shares of the company rose 1.8% in extended trading as investors reacted to the potential future deal.
Story at a Glance
- Category
- BUSINESS
- Reported By
- CNBC TV18
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
Elon Musk said on Tuesday that a merger of his two companies SpaceX and Tesla would be "a good idea" and that they had formed special committees to discuss a union, sending shares of the space and technology company up 8% in extended trading.
The company earlier posted its first profit as a public company and Musk said he expected annual recurring revenue of between $500 billion and $1 trillion by the end of 2027, as demand for its data-center space surges thanks to the AI boom.
Musk has in the past tantalised shareholders with the idea of combining SpaceX and Tesla, citing growing overlap between them. Speculation about the space company buying the EV maker has gained traction recently, with Barclays suggesting last week that a deal could be announced before Tesla’s annual meeting in December.
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