Elon Musk calls a Tesla-SpaceX merger a “good idea” as special committees examine it and SpaceX shares rise 8%

Elon Musk said Tuesday that a merger between Tesla and SpaceX is a “good idea,” and that special committees have been established at both companies to examine it. SpaceX shares rose 8% after his statement.

Musk said a combination would help with the Super Intelligence division and the “Terafab” project, described as a joint AI chip factory and data center planned for construction in Texas. He said the decision rests with the companies’ special committees and that, as a conflicted party, he cannot take part in their discussions.

Musk owns nearly a fifth of Tesla and just under half of SpaceX. Analysts believe a merger would give him control of the combined entity. He has previously discussed the possibility of a union, citing increasing overlap between the companies’ areas of activity.

Tesla was founded in 2003 and focuses on electric vehicles, artificial intelligence and renewable energy. SpaceX was founded in 2002, operates the Starlink satellite internet network and develops the Starship system.