Investors welcome the prospect of a possible merger between SpaceX and Tesla.

On Tuesday evening, Musk stated during the financial report conference call at SpaceX that the two listed companies under his umbrella have established a special committee composed of independent directors to study whether to proceed with a merger.

The billionaire, who also serves as both SpaceX and Tesla's CEO, said that he has recused himself from both committees, adding that discussing this long-rumored merger is "like dancing tap dance in a minefield."

The valuation of SpaceX is approximately $1.95 trillion, while Tesla's market value is $1.5 trillion.

However, this world's richest man stated that he believes merging Tesla with SpaceX is a good idea, as it will help the two companies strengthen their collaboration in areas such as artificial intelligence, robotics, and chip manufacturing.

Elon Musk said, "I truly believe that there is a lot of value in merging these companies, as we are essentially at the threshold of a superintelligence singularity."

Rumors about a possible collaboration between Tesla and SpaceX have been circulating for months, as Musk and other executives of SpaceX have continuously made related hints.

Merging with SpaceX, which has contracts with the US military, could put Tesla's lucrative Chinese business in an awkward position.

The Wall Street Journal reported in July that Tesla executives had discussed splitting up or selling the company's operations in China, but Musk dismissed this claim as "fake news."

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