Elon Musk said Tuesday that his two companies, SpaceX and Tesla, have formed independent special committees to explore a possible merger, calling the idea "a good idea" but stressing that the final decision rests with those committees and shareholders.
"I think it would be a good idea, but it's really up to the special committees of both companies," Musk told investors on a conference call, according to Reuters. "Because I'm a conflicted party, I can't actually be in the discussions of the special committees."
The committees were set up at the request of shareholders, who would ultimately need to approve any deal, Musk said. He acknowledged that the committees have not agreed on transaction terms and may never do so.
Musk argued that combining SpaceX and Tesla would offer significant advantages, particularly as the companies work on advanced technologies. "There's a lot of merit" to the merger, he said, citing cooperation on "superintelligence software, chip design, the Terafab obviously, robotics, mass-to-orbit with the Starmind constellation, connectivity."
He also noted that the chip manufacturing joint venture, Terafab, is slated to produce its first test chip around May or June of next year, with an aim to reach volume production thereafter.
News of the potential merger buoyed both stocks: SpaceX shares climbed more than 8 percent and Tesla shares rose over 2 percent on Wednesday morning, according to CNN.
The announcement comes amid scrutiny of Musk's role in limiting Ukraine's access to Starshield, the military version of Starlink, earlier this month. The Wall Street Journal reported that Musk ordered the slowdown, citing U.S. officials and sources, prompting calls for an investigation from several Democrats.
Musk initially claimed on X that only President Trump had the authority to order such a slowdown, adding that while Starlink is under SpaceX, Starshield is owned and operated by the U.S. government. The disruption affected the capabilities of Ukraine's drones, airplanes, and helicopters.
Observers note that a merger between SpaceX and Tesla would face significant regulatory and shareholder hurdles, but Musk's comments signal a serious internal discussion. The move could reshape both the automotive and aerospace industries, aligning with Musk's broader ambitions in AI and space.
