SpaceX and Tesla are investigating a potential merger that could bring both companies under one roof.
If the deal is consummated, it would create a company combining SpaceX’s rockets and artificial intelligence with Tesla’s autonomous-driving vehicles and robots.
Last month, Elon Musk said combining both companies he owns would be a good idea with “a lot of merit.”
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But he warned that a deal is far from guaranteed, according to media reports.
“And like much else on Wall Street, the driving force apparently is artificial intelligence, including demands for massive infrastructure spending to support its vast computing power,” the Los Angeles Times reported.
Mr. Musk said both companies have formed independent special committees to evaluate a possible merger.
He’s not participating in the negotiations since he owns shares in both companies and wants to avoid a conflict of interest.
“I think some people out there assume that a SpaceX and Tesla merger is a certainty, and I think that would be overstating it,” Mr. Musk said, according to the Los Angeles Times. “Do I think it would be a good idea? Yes, but at the end of the day, the shareholders have to be supportive of this.”
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