Tesla and SpaceX form committees to weigh potential merger

Elon Musk said during SpaceX's earnings call on Wednesday that Tesla and SpaceX have formed special committees to consider a potential merger, citing potential benefits in AI, chip design, robotics, and connectivity, though he stressed shareholder approval would be required. Musk said he would recuse himself from discussions due to a conflict of interest, and noted the committees have not reached an agreement and may not do so. He pointed to potential gains from closer cooperation between the companies in areas such as artificial intelligence, chip design, robotics, and satellite connectivity. Tesla is valued at about $1.5 trillion, while SpaceX is valued at $2 trillion. Musk has previously combined his businesses, including SpaceX's acquisition of xAI in February 2026. Following his comments, SpaceX shares rose over 8 percent in after-hours trading, while Tesla shares gained about 1.7 percent.