SpaceX and Tesla explore merger as Musk backs the idea

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SpaceX and Tesla have formed special committees of independent directors to explore a potential merger, with Elon Musk calling the idea "a good idea" during SpaceX's Oct. 20 earnings call. Musk said he cannot participate in the discussions as a "conflicted party," and no deal details have been revealed. SpaceX reported strong Q3 results with revenue up 161% to $14.6 billion, while Tesla's net income fell 43% to $787 million. Any merger would require shareholder approval, with Tesla shareholders and regulators likely to scrutinize the terms. SpaceX's AI business drove growth but capital expenditures reached $19.6 billion in the quarter, with another $35-40 billion expected in Q4.


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