Musk says SpaceX-Tesla merger is 'a good idea' as committees form

Elon Musk said Tuesday that merging SpaceX and Tesla would be "a good idea," confirming the companies have formed special committees to discuss a potential deal, sending Tesla shares up 8% in extended trading. The companies formed the committees at shareholders' request, with independent directors handling talks since Musk is a conflicted party. Musk cited benefits from combining efforts on superintelligence software, chip design, and robotics, though he stressed it's premature to assume a merger will occur. SpaceX reported its first public-company profit, with Musk projecting annual recurring revenue of $500 billion to $1 trillion by end of 2027. Tesla shares rose 1.8% further in extended trading, while analysts note Musk owns nearly half of SpaceX and a fifth of Tesla.