Elon Musk explores merger of Tesla and SpaceX companies

Elon Musk announced on Tuesday that Tesla and SpaceX are considering a merger. He made the announcement during a SpaceX earnings call. Musk said he believes combining the two companies is a good idea. Both companies have formed special committees of independent directors to study the deal.

Musk pointed to shared work in artificial intelligence, robotics, and satellite technology as reasons the merger makes sense. Together, the two companies could be worth between $3.5 and $5 trillion. That would make it one of the biggest corporate deals in history.

Musk is the chief executive and largest shareholder of both companies. Shareholders from each company would need to approve any deal. So far, no agreement has been reached, and a merger is not guaranteed.