With SpaceX reporting a significant increase in revenue and its first quarterly profit since going public, Elon Musk has indicated his support for a possible merger between SpaceX and Tesla. As his rocket and artificial intelligence company recorded its first quarterly profit since going public, powered by agreements to rent out processing capacity to AI companies, Elon Musk announced on Tuesday that he would support a merger of SpaceX and Tesla.
Musk stated that he felt he was “tap dancing through a minefield” when asked about a potential partnership on a call with investors, but that a combination would be “a good idea.” After the remarks, SpaceX shares surged about 5% in after-hours trading.
Musk stated that at the request of shareholders, special committees of independent directors had been formed at SpaceX and Tesla to investigate the concept. He said he couldn’t participate in their discussions because of a conflict of interest.
In addition to being the chairman and chief technological officer of SpaceX, Musk is the CEO of both businesses. According to a regulatory filing, he controlled over 82% of SpaceX’s voting power through shares with enhanced voting rights, and as of June 30, he held 48.4% of the company.
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