Musk says Tesla and SpaceX are weighing a merger

“Do I think it would be a good idea? Yes,” Elon Musk said on a SpaceX earnings call on Tuesday, adding that special committees at both companies are studying the move.

— Elon Musk

The committees, made up of independent directors, have not agreed on any terms, and Musk said shareholders would have to support a deal.

With Tesla valued at roughly US$1.5 trillion and SpaceX at US$2 trillion, a combination would be one of the largest mergers in history.

Why merge

Musk said a merger would make sense for the companies' work on chips, artificial intelligence, robotics and software, including Terafab, their joint chip-making project.