Musk considers merging Tesla and SpaceX as Wall Street rises with latter's earnings
The billionaire confirmed that both companies have set up independent committees to evaluate a potential merger that could create a tech giant valued at about $3.5 trillion.
Entrepreneur Elon Musk confirmed that Tesla and SpaceX are exploring a potential merger, a deal that could become one of the largest in corporate history. The announcement comes amid a positive trading day on Wall Street, driven by the financial results of SpaceX and other tech companies.
According to Just the News, Musk explained on Tuesday that both companies have formed special committees composed of independent directors to evaluate a potential merger, though he cautioned that there is still no agreement nor any guarantee that the deal will actually go through.
The entrepreneur said he views the idea of merging the two companies favorably because of the opportunities for collaboration in artificial intelligence, robotics, semiconductor design and connectivity.
However, he noted that he will remain on the sidelines of the negotiations due to his role as CEO of both companies, which could create conflicts of interest.
Musk also emphasized that any agreement would require shareholder approval and that the committees have not yet reached a consensus on the terms of a potential transaction.
Tech & Science
Tesla's new Roadster is finally unveiled after a nine-year wait: It jumps over other cars, spins in the air, and lands using thrusters
Emmanuel Alejandro Rondón
SpaceX's revenue soars, boosting Wall Street
The news coincided with the release of SpaceX's financial results for the third quarter of 2026, which exceeded analysts' forecasts.
The company reported revenue of approximately $14.58 billion, a year-over-year increase of 161%, driven primarily by its artificial intelligence and satellite connectivity businesses.
In addition, SpaceX posted a net profit of approximately $4.4 billion, compared to losses exceeding $1 billion recorded in the same period the previous year.
The figures were well received by investors. SpaceX shares, which went public in June of this year, rose about 8% in early trading on Wednesday.
According to data from Investing.com, the company's revenue far exceeded market expectations, which were around $12.72 billion.
The results also reflect the growing importance of artificial intelligence-related businesses within a company traditionally known for its rockets, space missions and the Starlink satellite network.
Stock market impact
The positive reaction was also bolstered by the earnings report from Super Micro Computer, which helped fuel interest in companies related to artificial intelligence.
In contrast, shares of Netflix fell after the company presented forecasts that failed to convince investors, according to Reuters.
Potential $3.5 trillion tech mega-merger
The potential merger between Tesla and SpaceX would bring together under a single corporate structure activities including electric vehicles, robotics, satellites, aerospace technology, chip manufacturing and artificial intelligence.
According to another Reuters analysis, the combined valuation of both companies would be around $3.5 trillion, although the final value of any transaction would depend on its financial terms and market conditions.
Analysts point to potential benefits in technological and financial integration, particularly the ability to combine SpaceX's infrastructure with Tesla's robotics, manufacturing and data processing projects.
However, a deal of this magnitude would face significant obstacles, including shareholder approval, corporate governance issues, and potential regulatory reviews related to SpaceX's defense contracts and Tesla's international operations.
Meanwhile, SpaceX's results and the prospects for collaboration between the two companies keep Wall Street's attention focused on the technology business conglomerate led by the billionaire.
🛠 Do you think there is an error in this article?
Recommendations
LATEST
