Elon Musk Floats Merger That Would Form a $3.5T Tech Titan

Elon Musk just inched closer to rolling his biggest ventures into a single tech colossus. On a SpaceX earnings call Tuesday, Musk said Tesla and SpaceX have set up special committees of independent directors to study a possible merger, which he personally supports but says he's recused from negotiating, reports the New York Times. The founder, CEO, and largest shareholder of both companies says he sees "a lot of merit" in the merger, notes Reuters, but he will not take part in two special committees to study the issue, or a Tesla shareholder vote. Based on current market values, the combined company could be worth roughly $3.5 trillion.

Backers see a unified empire tying together rockets, satellites, AI, robots, and cars, with analysts touting advantages like Tesla machines linked via Starlink to xAI data centers. The two companies have already begun working together on chips and AI, notes Axios. Critics, including some lawmakers, warn the deal would further concentrate power in the hands of the world's richest person. SpaceX shares jumped about 8% in premarket trading on the news, with Tesla rising about 1%. Musk cautioned there's no agreement yet—and no guarantee that there will be one, though Reuters notes that analysts see a deal as inevitable and markets expect one by year's end.