Musk: SpaceX, Tesla exploring merger | NHK WORLD-JAPAN News - NHKニュース

Tech billionaire Elon Musk says space development company, SpaceX, and electric carmaker, Tesla, have set up special committees to consider a potential merger.

Musk, who is CEO of both companies, said on Tuesday the committees consisting of independent directors were formed at the request of shareholders.

He added that he thinks a merger would be a "good idea", but he cannot be involved in discussions, describing himself as a "conflicted party".

Musk said the committees have not reached agreement on the terms of any transaction, and a merger would require shareholder approval.

Musk said: "Do I think it would be a good idea? Yes, but at the end of the day, the shareholders have to be supportive of this, and particularly on the Tesla side, we will need a 50 percent vote of all shares, not just those who vote, but of all shareholders, and that's quite a high hurdle to try to achieve."

SpaceX and Tesla have a combined value of roughly 3.5 trillion dollars.

Musk made the comments during a quarterly earnings call for SpaceX, which listed on the Nasdaq in June. It reported net income of 4.4 billion dollars for the July-September quarter, rebounding from a net loss in the previous three-month period.

The company's AI business grew ninefold from the same period last year, while its Starlink satellite internet service also contributed to the strong performance.