Musk backs potential Tesla and SpaceX merger as committees assess deal

The prospect of Tesla and SpaceX joining forces has become more concrete: Musk says special committees are assessing a possible merger, though no deal has been agreed. He supports combining the businesses, which together are valued at about $3.5 trillion, in what would be the largest merger ever.

Musk points to shared work in chips, artificial intelligence and other technology, spanning Tesla’s cars, robots and self-driving systems and SpaceX’s rockets, satellites and data centres. The deal would need approval from half of Tesla’s shareholders, a threshold Musk called high; Tesla shares rose 2% and SpaceX shares 8% in after-hours trading, while analysts say drivers are unlikely to see major near-term changes.