SpaceX, Tesla consider merger to create a de facto Elon Inc.

Billionaire entrepreneur Elon Musk has confirmed that SpaceX and Tesla are exploring a potential merger that could create a technology giant valued at approximately $3.5 trillion.

According to New York Times, Musk disclosed during SpaceX’s earnings call on Tuesday that both companies had established special committees of independent directors to evaluate the proposed merger.

“Do I think it would be a good idea? Yes,” Musk said, adding that he would not participate directly in negotiations because of potential conflicts of interest.

The proposed merger would combine SpaceX’s rocket operations, Starlink satellite internet services and artificial intelligence capabilities with Tesla’s electric vehicles, robotics and autonomous driving technologies.

Following the announcement, SpaceX shares surged more than nine percent in early Wednesday trading, while Tesla gained approximately three percent.

However, Musk acknowledged that negotiations remain preliminary, with no guarantee of an agreement.

“I do think there’s a lot of merit to combining the companies,” he stated.

The proposed deal could significantly expand Musk’s influence across several major technology industries.