Elon Musk says merging SpaceX and Tesla would be a 'good idea' as 'special committees' weigh a $3.5 trillion deal
SpaceX's Starship rocket lifting off from Boca Chica, Texas. Elon Musk's company posted a $4.4bn quarterly profit, reversing a loss of about $1bn a year earlier, as talks over a merger with Tesla continue.
Special committees of independent directors at both firms are now studying a deal that would be the largest merger ever. Musk called the set-up 'an odd kabuki dance' because, as a conflicted party, he cannot take part. He said it would be 'overstating it' to call a deal a certainty. Tesla would need 50 per cent of all outstanding shares to back it, which he called 'quite a high hurdle'.
SpaceX posted a $4.4billion quarterly profit as revenue jumped 161 per cent.
The news sent SpaceX shares up 8 per cent in after-hours trading.
Musk said discussing the merger felt like 'tap dancing through a minefield'.
