SpaceX and Tesla Form Merger Exploration Committee That Excludes Elon Musk

Independent director committees at both Tesla (TSLA) and SpaceX (SPCX) have been formed to explore a potential merger, with Elon Musk excluded from both over a conflict of interest. The move puts a TSLA-SPCX combination on the table as a live process rather than speculation.

The numbers SpaceX brings are large. Its Q3 revenue hit $14.6B, up 161% year over year, with net income of $4.4B. The AI business generated $7.6B of that revenue, more than half the quarterly total.

The cost side is just as notable. SpaceX is investing $19.6B per quarter in AI infrastructure, a figure that exceeds its quarterly revenue. That gap is the core of the concern around valuation and capital requirements in any deal.

A combined entity could coordinate AI development, infrastructure, and capital allocation across the two companies. Interpretation: the committees' independence signals both boards want a defensible process, which suggests the terms, particularly how SPCX's growth and spending are valued against TSLA, will draw scrutiny.