Musk backs potential SpaceX-Tesla merger as AI ambitions overlap

Elon Musk voiced support for combining SpaceX and Tesla during SpaceX's October 20 earnings call. He said each company had established a committee of independent directors to examine a possible deal. Musk pointed to potential benefits from bringing their work on artificial intelligence, semiconductors, robots and communications closer together.

The discussion reflects how far SpaceX's business now extends beyond rockets. Its latest earnings release showed quarterly revenue of $14.6 billion, including $7.6 billion from its Super Intelligence division and $5.2 billion from connectivity. Those operations put computing and satellite services alongside space transportation at the center of its business.

A combination would bring those businesses together with Tesla's vehicle, energy and robotics activities. For now, the companies are examining a possibility rather than announcing an agreed transaction. Musk cautioned that a merger should not be treated as inevitable and played down expectations of an immediate deal.,