In a bombshell revelation that has sent shockwaves through global business and financial circles, Elon Musk, the chief executive leading both electric vehicle giant Tesla and aerospace pioneer SpaceX, has publicly confirmed he supports the potential combination of the two high-profile firms and that the blockbuster merger proposal is currently under active evaluation.
Musk shared his perspective during a quarterly results call with SpaceX financial analysts on Tuesday, stating plainly: “Do I think it would be a good idea? Yes.” While he emphasized that stakeholders should not take the merger as a foregone conclusion, and any completed deal would require the formal backing of shareholders from both companies, he revealed that independent special committees have already been established at both Tesla and SpaceX to examine the feasibility and terms of the transaction.
“The special committees have not reached agreement on terms of any transaction and there’s no guarantee that they will,” Musk added during the call. “But I do think there is a lot of merit to merging and a lot to be gained.”
If completed, the union would go down as one of the largest corporate mergers in history. Current market valuations put Tesla at roughly $1.5 trillion, while SpaceX carries a valuation of approximately $2 trillion, bringing the combined valuation of the new entity to a staggering $3.5 trillion.
Notably, Musk has recused himself from the evaluation process, confirming he is not a member of either special committee tasked with reviewing the proposal. He explained that his dual role as top executive of both companies creates an inherent conflict of interest that disqualifies him from direct involvement in the review. Musk even framed public discussion of the merger possibility as a precarious challenge, comparing it to “tap dancing through a minefield.”
Ultimately, Musk stressed, the final call on whether the merger moves forward will be made by shareholders. To pass, the proposal would need the approval of at least 50% of Tesla’s outstanding shareholders, a threshold Musk acknowledged is “quite a high hurdle to achieve.”
This is a developing breaking news story, with new details expected to emerge as the special committees continue their deliberations. Updates will be published as additional information becomes available, and audiences can access real-time alerts through the BBC News mobile application or by following @BBCBreaking on the social platform X.