Tesla and SpaceX Set Up Committees to Study Blockbuster Merger

What started as speculation is now getting a real look. Both Tesla and SpaceX have set up committees to study a possible merger, according to Coinpedia, moving the idea into formal review. Based on SpaceX's valuation of almost $1.9 trillion, a combined company would be worth close to $3.5 trillion.

SpaceX is the growth story. Third-quarter revenue climbed 161%, landing at $14.6 billion. AI computing kicked in $7.56 billion of that, more than ten times what it brought a year earlier, while Starlink connectivity chipped in $5.25 billion.

Tesla tells a different tale. The carmaker pulled in over $100 billion in revenue across 12 months, but sales were flat in the third quarter and still lean mostly on electric vehicles. Its operating profit has slid from a late-2022 peak of almost $15 billion, now sitting at $3.63 billion.

The price tags diverge too: Tesla trades at 417 times earnings and 13 times sales, while SpaceX trades at 56 times sales. A quick deal is seen as unlikely, though a proposal could arrive soon.