Musk Proposes SpaceX-Tesla Merger

Elon Musk confirmed Tuesday that SpaceX and Tesla have formed special committees to explore a potential merger, which could become the largest deal in history and create a company worth around $3.5 trillion. Musk, CEO and largest shareholder of both firms, said combining the companies has "a lot of merit" amid the "superintelligence singularity," but deferred final decisions to independent director committees. A deal would require shareholder approval, with Musk recusing himself due to conflicts of interest. SpaceX is valued at about $2 trillion and Tesla at $1.5 trillion, with Musk owning roughly 48% and 20% respectively. Analysts warn of regulatory hurdles, including U.S. national security concerns and Chinese approval issues, while a merger could boost AI integration across robotaxis, humanoid robots, and orbital data centers.