Elon Musk says merging SpaceX and Tesla into a $3.5trillion giant would be a 'good idea' as committees hold talks
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.
Elon Musk called the process 'an odd kabuki dance' because special committees of independent directors at both firms are weighing the deal without him. As a conflicted party, he cannot sit in on the discussions. SpaceX shares jumped 8 per cent after hours after the company posted a $4.4billion quarterly profit. Musk warned that assuming a merger is certain 'would be overstating it'.
Tesla would need backing from 50 per cent of all outstanding shares, which Musk called 'quite a high hurdle'.
It would be the largest merger ever, with Tesla valued at about $1.5tn and SpaceX at $2tn.
Musk said: 'I feel like I'm tap dancing through a minefield.'
