Musk Backs Possible SpaceX–Tesla Merger as SpaceX Reports Quarterly Profit

Musk Backs Possible SpaceX–Tesla Merger as SpaceX Reports Quarterly Profit

Elon Musk said that he would support a merger between SpaceX and Tesla as his rocket and artificial intelligence company reported its first quarterly profit since going public, driven in part by deals to rent computing power to AI companies, Alex Pigman reported for Agence France-Presse (AFP).

Elon Musk backs a possible merger between SpaceX and Tesla as SpaceX reports its first quarterly profit since going public. [Photo: Tesla X]

Asked about a possible merger during a call with analysts, Musk said he felt he was “tap dancing through a minefield” but added that a combination would be “a good idea.”

SpaceX shares rose nearly 5% in after-hours trading following his comments.

Musk said independent director committees at both SpaceX and Tesla had been established at shareholders’ request to examine the proposal.

He added that he could not participate in their discussions because of a conflict of interest.

Musk is chief executive of both companies and also serves as SpaceX’s chairman and chief technology officer. According to a regulatory filing, he owned 48.4% of SpaceX as of June 30 and controlled more than 82% of its voting power through super-voting shares.

He also holds approximately 20% of Tesla. Musk said the committees had not agreed on the terms of any transaction and that there was no guarantee a deal would be reached.

He cautioned against treating a merger as a certainty.