FOX Business correspondent Connor Hansen has the latest on SpaceX CEO Elon Musk promising every child in America some action from his company on “The Claman Countdown.”
Elon Musk said Tuesday that merging his two companies, Tesla and SpaceX, would be “a good idea,” revealing that the two companies have formed special committees of independent directors to explore a possible deal.
Musk, who runs both companies, has previously entertained the idea of combining the businesses, highlighting the growing overlap between them.
Following SpaceX’s quarterly earnings report and Musk’s comments during an investor conference call Tuesday, SpaceX shares jumped as much as 8% in extended trading.
“I think it would be a good idea, but it really depends on the special committees of the two companies,” Musk said. “Because I am a conflicting party, I cannot participate in the discussions of the special committees.”
ELON MUSK PLEDGES TO GIVE EVERY CHILD IN AMERICA A SHARE OF SPACEX NEXT YEAR
Elon Musk said Tuesday that a possible merger between Tesla and SpaceX would be “a good idea,” revealing that the two companies have formed special committees to explore a possible deal. (REUTERS/Gonzalo Fuentes / Reuters)
Musk said the companies formed special committees at the request of shareholders, which would ultimately have to approve any merger.
“I think there’s a lot of merit in combining companies because we’re pretty much in the superintelligence singularity, and there’s a lot to be gained from cooperation on superintelligence software development, chip design, Terafab obviously, robotics, getting into orbit with the Starmind constellation, connectivity,” Musk said.
Speculation about a potential tie-up, including the possibility of SpaceX acquiring Tesla, has intensified, with Barclays suggesting last week that a deal could be announced as early as December, according to Reuters.
Musk cautioned that it was too early to know whether the merger would ultimately take place.
FERRARI CEO RATES TESLA ROADSTER LAUNCH “10 OUT OF 10,” THANKS ELON MUSK FOR DARING TO INNOVATE
SpaceX’s next-generation Starship spacecraft atop its Super Heavy booster launches during its ninth test at the company’s launch pad at Starbase, Texas, on May 27, 2025. (Joe Skipper/Reuters / Reuters)
The potential merger comes as SpaceX reported its first profit as a publicly traded company on Tuesday.
According to Musk, the company expects annual recurring revenue of between $500 billion and $1 trillion by the end of 2027.
Musk owns a significant stake in SpaceX while maintaining substantial voting control over the company.
Earlier this week, Musk pledged to give every American child a share of SpaceX next year and suggested the planned gift could be the first of many.
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Tesla’s next-generation Roadster was revealed at an event on October 15. (Tesla/X)
Tesla has also attracted attention recently, unveiling its highly anticipated Roadster last week during a showcase in which the vehicle used compressed air thrusters to take off from a ramp and perform a mid-air maneuver.
Reuters contributed to this report.
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