Elon Musk has said he likes the idea of a merger of Tesla and SpaceX, two of his most notable companies, and it is under active consideration.
“Do I think it would be a good idea? Yes,” Musk said during a call with financial analysts over the quarterly business results of SpaceX on Tuesday.
While Musk noted the certainty of such a merger should not be assumed, and it would need shareholders’ support, he said special committees within both companies have been formed to consider it.
“The special committees have not reached agreement on terms of any transaction and there’s no guarantee that they will,” Musk added. “But I do think there is a lot of merit to merging and a lot to be gained.”
With Tesla valued roughly $1.5 trillion and and SpaceX valued at $2 trillion, a combination of the two companies would mark one of the largest mergers in history.
Musk is not included in either of the special committees considering the move, he said, because he is a “conflicted party” as the chief executive of Tesla and of SpaceX.
Even commenting on the possibility of a merger between the two companies, Musk compared to being like “tap dancing through a minefield”.
Musk added a merger would ultimately be decided by shareholders. At least 50% of Tesla’s shareholders would need to approve the merger, which Musk described as “quite a high hurdle to achieve”.
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