SpaceX-Tesla merger: Musk floats idea, but hurdles remain

Elon Musk said on Wednesday that merging SpaceX and Tesla would be "a good idea," prompting SpaceX shares to jump nearly 5% in after-hours trading as special committees of independent directors at both companies study the proposal. Musk, citing a conflict of interest, said he cannot participate in the talks and cautioned that no deal terms have been agreed, with any merger requiring majority support of all Tesla shares—a hurdle he called "quite high." The committees were formed at shareholders' request, and speculation has grown after Barclays suggested a deal could be announced before Tesla's annual meeting in December. A combined company would be worth about $3.5 trillion and unite Musk's AI, robotics, satellite, and manufacturing ventures, though it faces regulatory scrutiny given SpaceX's US military contracts and Tesla's deep ties to China. Critics warn investors would assume broader technical and execution risks, while supporters cite efficiencies in capital allocation and supply chains.