Tesla and SpaceX form director committees to weigh merger
Both companies have set up panels of independent directors to examine a deal; Elon Musk says a combination would carry considerable advantages.
Tesla and SpaceX have each formed special committees of independent directors to examine a possible merger between the two companies, according to aitimes.com. The panels have begun formal discussions of a deal.
Elon Musk, who heads both companies, said a merger would have considerable advantages. A combined Tesla and SpaceX would be worth about $3.5 trillion.
Musk holds about 85% of the voting rights in SpaceX and about 20% in Tesla, a structure that shapes how any combination would be put together.
SpaceX has expanded its AI business sharply after absorbing xAI. In the third quarter, AI model and computing businesses accounted for more than half of SpaceX revenue, at $7.6 billion of $14.6 billion, and the company had 1.7 GW of AI computing infrastructure at the end of the quarter.
On the product side, Tesla recently began initial production of its humanoid robot Optimus, and the two companies are jointly pursuing a large semiconductor production facility called Terafab. The xAI voice model Grok Voice 3.0, released on the 14th, scored 86.9 points to rank first in Artificial Analysis's voice AI evaluation; it handles millions of conversations a day in Tesla vehicles and 20,000 calls a day at Starlink customer service.
Earlier context
Tesla unveiled its driverless vehicle Cybercab in 2024.
Quick answers
Are Tesla and SpaceX merging?
They have begun formal merger discussions and each set up a committee of independent directors to examine a deal. No agreement has been announced.
How much would a combined Tesla and SpaceX be worth?
About $3.5 trillion, according to the reported figures.
Who controls the two companies?
Elon Musk holds about 85% of voting rights in SpaceX and about 20% in Tesla.