Tesla and SpaceX explore $3.5 trillion merger

Elon Musk said Tuesday that Tesla and SpaceX are considering a merger, a move that would create one of the world's most valuable companies worth about $3.5 trillion. He called the proposal a "good idea" but not a certainty. Musk stated he cannot participate in the merger discussions, which are led by special committees from each company, and noted that a Tesla-side merger would require a 50 percent vote of all shares, a "high hurdle." SpaceX shares rose nearly 5 percent in late trading after its third-quarter earnings report. The companies have increasingly blurred lines in robotics, satellite communications, and AI, which Musk calls "superintelligence." Tesla reported a $4.4 billion profit in the latest quarter, with AI generating $7.56 billion in revenue, while Musk expects SpaceX's annual recurring revenue to surpass $500 billion by 2027.