SpaceX and Tesla explore merger that could boost Musk's control and payout

SpaceX and Tesla have formed special committees to discuss a potential merger, a move that could grant Elon Musk greater control and a significant payout. The deal faces questions about financial risks and strategic rationale. SpaceX reported $7.56 billion in Q3 revenue, largely from AI infrastructure, while Tesla posted a second consecutive quarter of declining profits. Musk argues combining the companies would boost "superintelligence software" development, though analysts note SpaceX's AI business resembles CoreWeave more than Anthropic. A stock-for-stock merger would give Musk voting control of Tesla, which he currently lacks, and could trigger accelerated vesting of his compensation package if the deal values Tesla at $2 trillion or more. Regulatory hurdles are considered low under the current administration.