Elon Musk says a Tesla and SpaceX $3.5 trillion merger is considered
Elon Musk is exploring a merger of Tesla and SpaceX.
The short version
- Tesla is valued at $1.5 trillion and SpaceX at $2 trillion.
- Special committees at both companies are reviewing the plan now.
- Shareholders must approve the deal with at least a 50 percent vote.
Why it matters to you. For investors holding shares in either company, a massive consolidation could reshape portfolios across the tech and automotive sectors.
Elon Musk says combining Tesla and SpaceX into a single giant is under active consideration. According to the BBC, Musk told financial analysts during a SpaceX quarterly results call on Tuesday that he thinks merging the two firms has a lot of merit.
Tesla is valued at roughly $1.5 trillion, and SpaceX is valued at $2 trillion, which would make the combination one of the largest corporate mergers in history. Special committees within both companies have been formed to study the move, though Musk is not on them because he leads both firms.
"Do I think it would be a good idea? Yes," Musk said on the call, while comparing the discussions to tap dancing through a minefield. The talks do not guarantee a deal, and no terms have been agreed upon yet.
Musk noted that at least 50% of Tesla shareholders would need to approve the transaction, which he called quite a high hurdle to achieve. That is one very expensive minefield to dance across.
