Elon Musk has expressed support for a potential merger between Tesla and SpaceX, a move that could create a $3.5 trillion tech giant spanning AI, space exploration, and electric vehicles. During a SpaceX Q3 earnings call on Tuesday, Musk said he believes the merger would be a 'good idea,' though he noted that the idea is still under discussion by special committees of independent directors. Shareholders have requested these discussions, but Musk cannot participate due to his conflicted role.
The merger would unite Tesla with SpaceXAI (formerly xAI), the developer of the Grok AI model, and the social media platform X, which SpaceX acquired earlier this year. Musk highlighted potential benefits, including cooperation on superintelligence software, chip design, robotics, and space connectivity. However, he cautioned that a merger is not guaranteed, as the committees have not agreed on terms, and Tesla shareholders would need to approve it with a 50% vote of all shares.
SpaceX's Q3 earnings report revealed a significant boost in AI revenue, with its 'Super Intelligence' segment generating $7.6 billion, an 830% increase from the previous year. This segment now represents the company's largest revenue contributor, driven by new cloud services agreements, the acquisition of Cursor, and increased adoption of Grok. Overall, SpaceX's revenue rose 161% year over year to $14.6 billion.
A Tesla-SpaceX merger would also combine two substantial corporate Bitcoin treasuries. SpaceX held 18,712 Bitcoin as of June 30, while Tesla held 11,509 BTC, totaling 30,221 BTC. This would make the combined entity the sixth-largest public Bitcoin treasury company.