SpaceX and Tesla form committees to discuss potential merger

Summarised from 2 outlets · Updated 21 Oct, 21:32 · Archive

Elon Musk announced that SpaceX and Tesla have formed special committees to discuss a possible combination.

Elon Musk announced on a Tuesday conference call to financial analysts that SpaceX and Tesla have each formed special committees to discuss a possible merger. The deal would combine the world's biggest provider of rocket launches and satellite internet service with the second-largest electric vehicle maker, creating what Musk says would be a $3.5 trillion entity worth potentially more than any previous corporate merger.

Musk stated that the combination made sense given the future of both companies relies heavily on artificial intelligence. The two companies have already combined forces in AI chip production and on a project to make flying cars. Musk added that, as the biggest owner of both companies, he cannot interact with the committees and is not privy to their discussions.

Market reaction was positive, with SpaceX stock rising 8% and Tesla rising 3.5% in early afternoon trading. The deal had been rumored for months before the announcement. If completed, it would surpass the current record holder, Vodaphone AirTouch's deal for Germany's Mannesmann from over a quarter of a century ago. For comparison, chipmaker Nvidia, the biggest company currently on the market, is valued at $5.2 trillion.

How it is being reported

• A SpaceX-Tesla megamerger could benefit both companies and Elon Musk's personal fortuneStocks of Elon Musk's two biggest companies are rising Wednesday after he suggested a combination was in the works to form a trillion dollar colossus in possibly the biggest deal ever.Clickorlando · 21 Oct, 20:58
• A SpaceX-Tesla megamerger could benefit both companies and Elon Musk's personal fortuneStocks of Elon Musk's two biggest companies are rising Wednesday after he suggested a combination was in the works to form a trillion dollar colossus in possibly the biggest deal ever.News4Jax · 21 Oct, 20:58

In this story: Elon Musk · SpaceX · Tesla · Nvidia · Vodaphone AirTouch

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