Musk explores merging Tesla and SpaceX

Elon Musk confirmed Tuesday he is exploring a merger between Tesla and SpaceX, saying on a SpaceX earnings call that combining the companies has "a lot to be gained." Musk said special committees at both companies are examining a potential deal, though he noted no terms have been agreed upon and there is no guarantee of a transaction. SpaceX reported $14.58 billion in revenue, beating analyst expectations. The merger idea follows Tesla's recent demonstration of its Roadster 2, which uses SpaceX thrusters for aerial maneuvers, though that model won't be commercially available. SpaceX projects first-quarter 2027 revenue of $33 billion to $37 billion, driven by its compute contract pipeline, while Starlink grew to 13.6 million subscribers.