Elon Musk confirms considering mega-merger of Tesla and SpaceX

Elon Musk has confirmed that both SpaceX and Tesla have established special committees comprised of independent directors to investigate a potential merger between the two major companies. Speaking during SpaceX's third-quarter earnings call, Musk expressed his personal belief that a merger would be beneficial, citing significant overlap and shared work in areas such as artificial intelligence, chip design, robotics, and connectivity.

While Musk is supportive of the idea, he noted he is a "conflicted party" and is not participating in the committees' discussions. He cautioned against assuming a merger is a certainty, emphasizing that the committees have not yet agreed on any terms. Any eventual deal would require approval from shareholders, with a particularly high hurdle for Tesla requiring 50 percent approval of all outstanding shares.