SpaceX and Tesla explore merger; Musk says it is not guaranteed

Elon Musk confirms that independent special committees at SpaceX and Tesla are examining a merger between the two companies.

Musk says he personally thinks combining them makes sense for AI software, chips, Terrafab, robotics and Starlink, but the deal is not guaranteed. He says it would need approval from 50% of all Tesla shares voting yes.

Semafor reports that the combined company would be valued at $3.5 trillion, and that both firms' share prices rose after the announcement. Musk has cautioned that shareholders could reject the proposal. No merger terms or agreement have been reported.