Musk Announces SpaceX and Tesla Form Special Committees to Formally Explore Merger

Odaily: Musk revealed on Tuesday during SpaceX's (SPCX) quarterly earnings webcast that SpaceX and Tesla (TSLA) have formed special committees and begun exploring a potential transaction. This marks an important step from market speculation to formal evaluation, though the two sides have not yet reached agreement on the terms of a deal.

Both companies rank among the world's most valuable enterprises. SpaceX is currently valued at approximately $2 trillion, while Tesla's market capitalization is close to $1.5 trillion. If a merger ultimately materializes, based on a simple sum of the two companies' current valuations, the assets involved would be approximately $3.5 trillion, and the potential transaction could set a record for the largest corporate merger ever. Musk serves as chief executive of both companies, and said at the meeting: "I do think there's a lot of value in combining the two companies. By working together to develop superintelligent software, we can gain a lot."

However, the transaction is far from being finalized. Musk said that because he leads both companies and has a conflict of interest, he will not participate in the special committees' discussions. Currently, the two committees have not reached agreement on the terms of the deal.