SpaceX and Tesla form committees to examine a possible merger
Elon Musk said SpaceX and Tesla have formed committees of independent directors to examine a possible merger, which he called a “good idea”; he cannot take part in their discussions because of a conflict of interest. The committees have not agreed terms, Musk said, and any deal would need shareholder approval. The announcement came as SpaceX reported its first profit as a public company: $4.4 billion (€3.8 billion) in the third quarter.
Bottom line — A merger is not agreed: Tesla shareholders would need to approve it, and SpaceX’s committees have yet to settle terms.
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Reuters reported that the talks could result in SpaceX acquiring Tesla, citing an unnamed person familiar with the matter.
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Reuters said Barclays had suggested a deal could be announced before Tesla’s annual meeting in December.
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SpaceX revenue rose 161% year on year to $14.58 billion (€12.5 billion) in the quarter, according to Reuters.
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Reuters reported that AI revenue rose nearly tenfold to $7.56 billion (€6.5 billion), largely from renting data-centre capacity to developers.
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SpaceX spent $19.6 billion (€16.8 billion) on capital expenditure in the quarter, including $16.4 billion (€14.1 billion) for AI, Reuters reported.
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Musk said SpaceX expected annual recurring revenue of $500 billion to $1 trillion (€429 billion to €857 billion) by the end of 2027; its CFO forecast about $100 billion (€85.7 billion) by the end of 2026.
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Musk said the companies see scope to cooperate on AI software, chip design, robotics and connectivity, according to Reuters.