Tesla and SpaceX discussing potential merger, Musk says

Tesla and SpaceX chief executive Elon Musk revealed during SpaceX’s third-quarter earnings call on Tuesday that both companies have established special committees to discuss a possible corporate merger. Musk noted that these independent committees were formed at the direct request of shareholders, though he did not disclose the identities of the independent directors involved.

As the leader of both companies, Musk stated that he is restricted from participating in any of the deliberations due to a clear conflict of interest. He described the negotiation process humorously as an unusual kabuki dance where two distinct groups hold conversations while he is barred from entering the room.

The negotiating parties have not yet finalized any transaction terms, and officials stressed there is no guarantee an agreement will be reached. Musk emphasized that shareholder backing is critical, noting that the Tesla side requires a 50 percent vote from every existing share, rather than just a majority of those who cast ballots, representing a steep threshold to clear.

"I do think there’s a lot of merit to combining companies as we are pretty much in the superintelligence singularity. And there’s a lot to be gained from cooperating on developing superintelligence software, chip design, the TeraFab, obviously robotics, mass to orbit with the Starmind constellation, connectivity."

Elon Musk

Despite the hurdles, Musk described the prospect of combining Tesla and SpaceX as a sound strategy. He highlighted upcoming milestones in the superintelligence singularity and pointed to numerous cooperative advantages, ranging from advanced artificial intelligence software and chip manufacturing to robotics and the Starmind orbital connectivity constellation.