Elon Musk stated that he believes merging Tesla with SpaceX is a “good idea,” which could create a tech giant with a market value of about $3.5 trillion, covering areas such as artificial intelligence, space exploration, and electric vehicle manufacturing.
Musk said during the SpaceX third-quarter earnings call on Tuesday, "Do I think this would be a good idea? Yes."
Elon Musk stated that both SpaceX and Tesla have established special committees composed of independent directors at the request of shareholders to discuss this idea, but due to his own conflict of interest, he is unable to participate in the relevant discussions.
If the merger goes through, Tesla will be under the same corporate group as Grok, its developer SpaceXAI (formerly xAI), and the social media platform X. SpaceX acquired X in February. Meanwhile, the AI business of SpaceX has become its largest revenue source in the third quarter, highlighting the central role of artificial intelligence in Musk's continuously expanding tech empire.
Elon Musk said, "In the development of super intelligent software, chip design, Terafab, and of course also robots, achieving large-scale orbit insertion through the Starmind constellation, connectivity, and other aspects, cooperation will bring many benefits."
However, Musk has also lowered external expectations for the final realization of the merger.
He said, "Some people in the outside world think that the merger between SpaceX and Tesla is a foregone conclusion, but I think that's an overstatement." He added that the special committee has not yet reached an agreement on any terms of the deal, nor can they guarantee that an agreement will be reached in the end.
After all, shareholders must support this transaction, especially on the Tesla side. We need the votes of 50% of all shares, not just the voters, but all shareholders. This is a rather high threshold.
Musk's remarks came after SpaceX announced its third-quarter earnings. The financial report shows that the company's revenue increased by 161% year-on-year to $14.6 billion, mainly driven by its “Super Intelligence” AI business.
SpaceX indicates that its ‘Super Intelligence’ segment achieved revenue of $7.6 billion in the third quarter, a year-on-year increase of 830%, making it the company's largest source of income.
According to SpaceX, the growth comes from the launch of new cloud service agreements, acquisitions of Cursor, and an increased adoption rate of its AI model Grok among enterprises and consumers.
If Tesla merges with SpaceX, the considerable Bitcoin assets of both companies will also come under the same umbrella. According to their respective quarterly reports, as of June 30th, SpaceX held 18,712 Bitcoins, while Tesla held 11,509 Bitcoins during the same period.
Based on these disclosures, the merged company will hold 30,221 Bitcoin coins, which will rank it as the sixth largest listed Bitcoin holding company, surpassing the cryptocurrency exchange Bullish.
