Elon Musk said Tuesday that he would like to see the consolidation of his business empire by formally merging his two largest companies, SpaceX and Tesla.
“Do I think it would be a good idea? Yes,” Musk said of a potential merger. He was speaking during a question-and-answer period as part of SpaceX’s third-quarter earnings call. Musk said, ultimately, it not his decision. “But at the end of the day the shareholders have to be supportive of this.”
Musk’s talk of a merger comes after a busy year in which SpaceX already acquired Musk’s artificial intelligence firm, xAI, in February. In June, SpaceX went public with the largest initial public offering on record.
At the request of shareholders of each company, Musk said both SpaceX and Tesla have formed special committees of “independent directors” to discuss the idea of a merger. “I’m a conflicted party; I can’t actually be in the discussions of the special committees,” Musk said. Those committees have not reached an agreement on the terms of a merger transaction, Musk said.
“Obviously there’s no guarantee that they will, but I do think there’s a lot of merit to combining the companies as we are pretty much in the superintelligence singularity,” Musk said. “There’s lots to be gained from cooperating on developing superintelligence software, chip design, the Terafab, obviously robotics, mass to orbit with the Starmind constellation, and connectivity. So I think it would be a good idea.”
What is even happening here?
It might seem like madness to merge a space business with an automotive business, but both SpaceX and Tesla are rapidly transitioning from their original markets into artificial intelligence.
