Tesla and SpaceX explore possible merger as Musk backs combining the companies

Tesla and SpaceX are examining a possible merger, Elon Musk said during SpaceX's October 20 earnings call. Musk supported combining the businesses but cautioned investors against treating a transaction as certain.

Both companies have assigned independent directors to review the proposal. Musk said his conflicting interests prevent him from participating in those discussions. The committees have not agreed on transaction terms.

The discussion comes as artificial intelligence accounts for a growing share of SpaceX's business. Its third-quarter revenue reached $14.6 billion, including roughly $7.6 billion from its Super Intelligence division. The company recorded net income of $4.4 billion.

Musk's backing leaves the outcome unresolved. He said shareholders would ultimately determine whether the companies combine, with the review proceeding separately from his own involvement.