Musk sees potential SpaceX-Tesla merger as possible

American entrepreneur and billionaire Elon Musk has voiced support for a possible merger, or consolidation of operations, between the aerospace company SpaceX, which he leads, and electric vehicle maker Tesla.

Operative Information Center-OMM, citing the TASS news agency, said Musk discussed the matter during a presentation on SpaceX’s third-quarter financial and operating results.

Musk described the idea of combining the two multinational companies as a “good and efficient idea” and confirmed that strategic discussions had begun. He said special working groups and committees of independent directors had been set up at both SpaceX and Tesla following formal requests from shareholders. The committees will examine the legal, financial and technological aspects of a potential merger.

Musk also said he was taking a neutral position to avoid a conflict of interest and was not directly participating in the committees’ discussions.

According to regulatory financial filings, Musk owns 48.4% of SpaceX’s shares. Through special shares with enhanced voting rights, he directly controls more than 82% of the voting power in the company. His stake in Tesla is about 20%.

Experts say a merger of the two companies could create a major global technology conglomerate spanning artificial intelligence, robotics, semiconductor manufacturing and satellite communications.