In a move that could result in the largest corporate merger in history, Elon Musk has openly supported combining Tesla and SpaceX. The two companies, with a combined valuation of nearly $3.5 trillion, have established special committees of independent board members to evaluate the proposal.
The Path to "Superintelligence"
During a conference call regarding SpaceX's financial results, Musk revealed that the committees were formed following shareholder requests. He described the potential merger as a "good idea," emphasizing that consolidation would provide significant advantages in developing superintelligence software, chip design, robotics, and satellite connectivity through the Starmind constellation.
However, the process is complex. Musk, who owns roughly one-fifth of Tesla and nearly half of SpaceX, is recused from discussions due to a conflict of interest. He also noted that securing sufficient support from Tesla shareholders might be challenging, as neither committee has yet finalized the terms of a deal.
SpaceX's Financial Surge
SpaceX, now valued at $2 trillion and surpassing Tesla in market capitalization, reported stellar financial performance. Third-quarter net profits reached $4.4 billion, significantly beating analyst expectations. The company's AI division was a highlight, with revenues soaring to $7.56 billion as SpaceX becomes a critical provider of computing power and infrastructure for firms like Alphabet and Anthropic.
Additionally, the Starlink satellite internet service reached 13.6 million subscribers, driving connectivity revenue up by 69% year-over-year to $5.25 billion. Looking ahead, SpaceX CFO Brett Johnsen expects total revenue to reach $37 billion by the first quarter of next year.
