Elon Musk is considering merging Tesla and SpaceX, a deal that would be the largest in history. Special committees have been formed to assess the potential deal, though no agreement has been reached.
01Summary
- 01Tesla is valued at roughly $1.5tn (£1.1bn) and SpaceX at $2tn (£1.5tn).
- 02Musk said special committees have been formed to assess a potential deal but stressed there is no guarantee it will happen.
- 03The merger would combine Tesla's cars, robots and self-driving technology with SpaceX's rockets, satellites and AI operations.
- 04SpaceX shares rose 8% and Tesla shares climbed 1.5% in after-hours trading following the news.
- 05Any deal would require approval from half of Tesla's shareholders, a threshold Musk called 'quite a high hurdle'.
02Why it matters
The merger would reshape two trillion-dollar companies, potentially affecting Tesla shareholders who would hold a smaller stake in a larger, more complex business. It could also accelerate Musk's plans for AI and Mars colonisation.
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