Tesla, SpaceX Committees Weigh $3.5 Trillion Merger

Independent special committees at Tesla and SpaceX are considering a possible merger that could create a company valued at about $3.5 trillion; no agreement has been reached, and a deal is not assured. Elon Musk, who leads both companies, says he is excluded from the discussions because of conflicts of interest but supports combining their AI, chipmaking, computing, satellite, automotive and robotics operations; any deal would require shareholder approval, including approval from a majority of Tesla’s outstanding shares. The proposal has prompted concerns about conflicts of interest, shareholder protections, financing, regulation and national security, while supporters cite potential technology and infrastructure benefits and greater scale for SpaceX’s expansion. A merger would consolidate the companies’ reported 30,221 bitcoin holdings, worth roughly $2.5 billion at the prices cited. SpaceX reported third-quarter revenue of $14.58 billion, exceeding analyst expectations, and net income of $4.4 billion; its shares rose as much as 10% after the results and merger comments, while Tesla shares also gained ahead of its earnings report.