Elon Musk confirms Tesla, SpaceX are exploring possible merger

Tesla and SpaceX CEO Elon Musk said Tuesday that two of his companies are exploring a possible merger and have formed shareholder committees to consider the option. 

Musk said a merger of the two companies was not guaranteed, but that he supported the idea. Because the billionaire runs both companies, he is not allowed in the discussions regarding the possible merge.

"Both SpaceX and Tesla have formed special committees at the request of shareholders," Musk said on an earnings call. "Because I'm a conflicted party I actually can't be in these discussions of these special committees ... I think some people out there think a SpaceX and Tesla merger is a certainty, I think that would be overstating it. Do I think it would be a good idea? Yes.

"At the end of the day, shareholders have to be supportive of this," he continued. "The special committees have not reached an agreement on the terms of any transaction, and it doesn't mean they will, but there is a lot to be gained as we are pretty much in the superintelligence singularity and there's a lot to gain from cooperating on superintelligence software, chip design, robotics ... connectivity. So I think it would be a good idea."

The confirmation comes as Musk discussed SpaceX's quarterly earnings, which exceeded estimates. The company's third quarter earnings saw the company earn $14.58 billion in revenue.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.