Driving the news: Musk said during SpaceX’s earnings conference call that the two companies had formed committees of independent directors to explore the possibility of a deal.
- “Because I’m a conflicting party, I can’t really participate in the discussions,” he said, but added that “I think it would be a good idea.”
Zoom: Musk said “there is a lot to be gained” from cooperation on technologies such as AI, chips, robotics and connectivity.
- But he added that a deal was not certain.
- “I think it would be overkill,” he said, noting that 50% of Tesla shareholders would have to approve the deal, which he called a major hurdle.
What they say: Technology analyst Gene Munster of Deepwater Asset Management said he believes there is a 95% chance a deal will be reached within the next two years.
- “Believe me, the shareholders would support this,” Munster said Tuesday on X after Elon Musk’s comments.
Please note: Any combination would be huge: SpaceX has a market cap of more than $2 trillion, while Tesla’s is nearly $1.5 trillion.
- Tesla releases its quarterly results on Wednesday.
Editor’s note: This story has been updated with additional details.
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