Elon Musk confirmed that Tesla and SpaceX are currently discussing a potential merger. The proposed combination of the two companies could result in a new entity with an estimated valuation of $3.5 trillion.
Both organizations have established special committees to evaluate the feasibility of this deal. Musk is excluded from these committees because he is considered a conflicted party in the negotiations.
No formal agreement has been reached between the companies at this stage. Any final merger deal will require majority approval from Tesla shareholders to proceed.
Market sentiment regarding the merger has shifted recently. The probability of an official announcement occurring before the end of the year has declined over the past week.
