SpaceX and Tesla's boards have each set up independent committees of directors to evaluate a potential merger, after Elon Musk urged that the idea holds merit during a conference call on Tuesday.
Musk admitted the path is "tap‑dancing through a minefield" and cautioned that Tesla shareholders may struggle to approve a $3.5 trillion deal, while noting he cannot be part of the discussions because of a conflict of interest.
Following the call, SpaceX shares surged 10% and Tesla shares climbed 3.5%, reflecting market optimism about the prospect of combining their electric‑vehicle, AI, and aerospace capabilities.
Gene Munster, founder of Deepwater Asset Management, said Musk has reiterated the merger's appeal three times on the call, hoping to galvanize enthusiasm and push the process forward.
SpaceX's recent quarterly results—$4.4 billion net income and $7.56 billion AI revenue—outpaced analysts' forecasts, giving the companies a strong financial footing to entertain a union that would span driverless cars, humanoid robots and space‑based data centers.
The committees will now review terms and seek shareholder approval at the next annual meetings, with the final decision expected within the next 12 months.