Musk backs Tesla-SpaceX merger as both companies form review committees

Elon Musk said he supports combining Tesla and SpaceX, with special committees formed at both companies to consider a potential merger.

• Musk voiced support for merging the two companies during SpaceX's third-quarter earnings call Tuesday.
• Both companies have formed special committees to consider the merger, which have not reached agreement on terms.
• Musk said he cannot participate in the discussions as a conflicted party and that shareholders will decide.
• SpaceX reported third-quarter net income of $4.4 billion on revenue of $14.6 billion, up 161% year-over-year.
• Both boards have each formed special committees of independent directors to review the potential merger.
• The merger consideration follows SpaceX's IPO, which cemented Musk's voting control over the company.
• Musk said the potential merger would require approval from at least 50 percent of Tesla shareholders.
• SpaceX swung from a roughly $1 billion net loss a year earlier to $4.4 billion in net income.
• A combined Tesla-SpaceX would be worth more than $3 trillion, ranking as the largest corporate merger in history.
• Musk said the tie-up could benefit their work on chips, AI and technology and advance his mission to colonise Mars.
• Shares in both companies rose on the news, and analysts expect shareholders to approve despite regulatory and pricing concerns.
• SpaceX's $14.58 billion revenue beat analyst projections, driven by growth in its Starlink and Super Intelligence AI segments.