Elon Musk said Tuesday that combining Tesla and SpaceX would be “a good idea,” confirming that both companies have established special committees of independent directors to examine a potential merger.

Musk leads both companies and has previously entertained the prospect of bringing them together. He has pointed to growing overlap between the businesses as a reason the idea carries merit.

The disclosure followed SpaceX’s quarterly earnings report and Musk’s remarks during a conference call with investors Tuesday. SpaceX shares jumped as much as 8% in extended trading after the report and his comments.

Musk made clear that the decision cannot simply come from him, given his leadership roles and interests in both companies.

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“I think it would be a good idea, but it's really up to the special committees of both companies,” Musk said. “Because I'm a conflicted party, I can't actually be in the discussions of the special committees.”

The committees were formed at the request of shareholders, according to Musk. Any merger would ultimately require approval from shareholders, placing the final decision beyond the special committees and Musk himself.

Musk argued that cooperation between Tesla and SpaceX could benefit several technological efforts. He cited superintelligence software, chip design, the Terafab, robotics, connectivity, and the ability to move mass into orbit using the Starmind constellation.

“I do think there's a lot of merit to combining the companies as we are pretty much in the superintelligence singularity, and there's a lot to be gained from cooperating on developing superintelligence software, chip design, the Terafab obviously, robotics, mass-to-orbit with the Starmind constellation, connectivity,” Musk said.

Elon Musk today on a potential merger between SpaceX and Tesla:

"Both Tesla and SpaceX have formed special committees at the request of shareholders. Because I'm a conflicted party I can't be in on these discussions. I don't think we should assume that a merger is a certainty. Do I think it would be a good idea? Yes. But at the end of the day, shareholders have to be supportive of this. The special committees have not reached an agreement on any transaction, and it doesn't mean they will, but there is a lot of be gained from cooperating on SI, chip design, robots, mass or orbit, connectivity. I think it would be a good idea." — Sawyer Merritt (@SawyerMerritt) October 20, 2026

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The comments arrived as speculation surrounding a possible combination has intensified. One scenario receiving attention involves SpaceX acquiring Tesla, though Musk cautioned that it remains too early to know whether any merger will happen.

Barclays suggested last week that a deal could be announced as early as December, according to Reuters. Musk’s Tuesday comments confirmed that formal committees are exploring the possibility, but they did not establish that an agreement is assured.

The possible merger discussion coincided with SpaceX reporting its first profit as a publicly traded company earlier Tuesday. Musk also offered a sweeping projection for the company’s future revenue.

According to Musk, SpaceX expects annual recurring revenue between $500 billion and $1 trillion by the end of 2027. He owns a significant stake in the company while retaining substantial voting control.

SpaceX’s launch operations remain another prominent part of the company’s activity. Its next-generation Starship spacecraft, positioned atop its Super Heavy booster, launched on its ninth test from the company’s launch pad in Starbase, Texas, on May 27, 2025.

Earlier this week, Musk pledged to give every child in America one share of SpaceX next year. He also suggested that the planned stock giveaway could become the first of several such distributions.

Tesla, meanwhile, recently attracted attention by unveiling its long-anticipated Roadster last week. During the showcase, the vehicle used compressed air thrusters to launch from a ramp and perform a maneuver in midair.

The Roadster was unveiled at an event on Oct. 15, adding another high-profile technology demonstration to Tesla’s recent activity. The company’s automotive and robotics work also figures into the areas Musk described as possible grounds for closer cooperation.

For now, the merger proposal remains under review by the independent committees established by Tesla and SpaceX. Musk has plainly endorsed the concept, but shareholders and the committees must determine whether the two companies ultimately join forces.

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