Musk: Merging ‘Tesla’ and ‘SpaceX’ Is a Good Idea... Committees Formed to Study Deal
Elon Musk announced the study of merging his companies Tesla and SpaceX through independent committees, raising SpaceX shares by 8%, with expectations of massive revenues by 2027.
Translated by Qiyas from الجريدة — Original source
US businessman Elon Musk said that a merger between his companies, SpaceX and Tesla, would be a good idea and that both have formed special committees to discuss the matter, leading to an 8% rise in the space and technology company’s shares during after-hours trading.
The company had earlier announced on Tuesday its first profits since its stock market listing. Musk said he expects recurring annual revenues ranging from $500 billion to $1 trillion by the end of 2027, with rising demand for its data center spaces driven by the boom in artificial intelligence.
Musk has previously piqued shareholders’ interest in the idea of merging SpaceX and Tesla, pointing to increasing overlap between the two. Such a move would pave the way for what would be classified as the largest corporate merger in history. Speculation about a potential acquisition of the electric vehicle maker by the space company has gained momentum recently, with Barclays Bank last week hinting at the possibility of an announcement before Tesla’s annual meeting in December.
In his first official confirmation that the two companies are in talks, Musk said, “I think it would be a good idea, but the decision ultimately rests with the special committees of the two companies.” He added during a conference call with investors, “Given that I am a party with conflicting interests, I cannot actually participate in the special committees’ discussions,” which are composed of independent board members.
He said the special committees were formed at the request of shareholders, who will ultimately have to approve the deal.
He continued, “I truly believe there are significant benefits to merging the two companies, as we are approaching the singularity in superintelligence. There is much to be gained from collaborating on the development of superintelligence software, chip design, the Starship project, robots, launching payloads from Earth to orbit using the Starlink constellation, and connectivity.”
