Billionaire entrepreneur Elon Musk says he is considering merging electric vehicle maker Tesla with his space exploration company, SpaceX, in a move that could create one of the world’s largest corporate groups.
Musk confirmed the possibility during a call with financial analysts discussing SpaceX’s latest business results.
He said he believed there was significant value in combining the companies, but stressed that a merger was not guaranteed.
Special committees have reportedly been formed within both companies to examine the proposal. The committees have yet to agree on the terms of any transaction.
Tesla is known for its electric vehicles and work on robotics, while SpaceX develops rockets, operates the Starlink satellite internet network and is expanding its artificial intelligence and computing businesses.
Estimates put Tesla’s value at around one-point-five trillion dollars, while SpaceX is valued at approximately two trillion dollars.
A merger could bring their operations, technology and resources under one corporate structure, but it would require shareholder approval and agreement on the terms.
Musk, who leads both companies, says he will not participate in the committees’ deliberations because of his potential conflict of interest.
For now, the proposed merger remains under consideration, with no final deal announced.
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