NewzElon Musk stated during a SpaceX third-quarter earnings question-and-answer session on Tuesday that formally merging SpaceX and Tesla is a "good idea," aiming to consolidate his two largest companies. The announcement coincided with SpaceX posting its first profit as a public company.
Following Musk's remarks, SpaceX shares rose 4.9% in extended trading. Speculation regarding a potential deal has intensified in recent weeks, with Barclays having suggested prior to the announcement that an official corporate move could be revealed ahead of Tesla's annual meeting in December.
Special committees have reportedly been formed to facilitate discussions regarding the potential merger. While Musk has previously floated the concept of combining the enterprises, Tuesday's remarks represent a significant step toward formal consolidation.
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