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Musk says Tesla SpaceX merger is under active consideration
BBC News·
Elon Musk said on Tuesday he supports merging Tesla and SpaceX and special committees are examining terms. Musk cautioned no deal is certain and shareholders must approve. Tesla is valued near $1.5 trillion and SpaceX near $2 trillion. SpaceX shares rose 8 percent after hours. Quarterly results showed $7.5bn cloud revenue and $5.2bn from Starlink.
Prism
What It Means For You
- A merger would need majority Tesla shareholder approval under Musk's description.
- Musk said he sits on neither special committee due to conflicted roles.
- Combined chip and AI work was cited as a rationale for closer integration.
What's Happening
- Musk spoke on a SpaceX quarterly results call on Tuesday.
- He compared discussing the deal to tap dancing through a minefield.
- Tesla shares rose 2 percent ahead of its own results on Wednesday.
SpaceX revenue mix
- Cloud compute for tech firms brought $7.5bn in the quarter.
- Starlink revenue reached $5.2bn in the same period.
- SpaceX lost $1.1 billion so far this year overall.
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