Tesla SpaceX merger: Musk says considering a deal, no agreement yet

Elon Musk has said he is actively considering a merger between Tesla and SpaceX, his two largest companies.

Musk says merger is possible

Elon Musk said during a call with financial analysts on Tuesday that he believes a merger between Tesla and SpaceX would be a good idea. He added that special committees within both companies have been formed to examine the possibility.

"Do I think it would be a good idea? Yes," Musk said. "But I do think there is a lot of merit to merging and a lot to be gained."

He emphasized that no agreement has been reached on terms, and there is no guarantee the committees will reach a conclusion. Shareholders would need to support any such move.

Valuations show massive scale

Tesla is valued at roughly $1.5 trillion. SpaceX is valued at $2 trillion. A merger would create one of the largest corporate combinations in history.

SpaceX's business and current scrutiny

SpaceX builds rockets and Starlink internet satellites. It provides a secure satellite network for governments through its Starshield business.

Starlink's revenue rose to $5.2 billion in the three months to 30 September, up from $3 billion in the same period last year.

Starshield is currently under scrutiny over claims that Ukraine’s access to the network was limited, leaving it vulnerable to Russian strikes.

US President Donald Trump has denied that he or Musk ordered the slowdown.

Musk suggested the US government might have been behind the restrictions.

No official decision or agreement

There is no official announcement of a merger. The special committees have not reached agreement on terms. No guarantee exists that a transaction will happen.