Musk Calls SpaceX-Tesla Merger a 'Good Idea' as AI Revenue Jumps 830%

Musk says merging Tesla and SpaceX would be a 'good idea'

Elon Musk said he likes the idea of merging Tesla with SpaceX, a move that could create a technology company worth roughly $3.5 trillion, combining artificial intelligence, space exploration and electric vehicle manufacturing. He made the comment during a SpaceX third-quarter earnings call on Tuesday.

"Do I think it would be a good idea? Yes," Musk said. He added that both SpaceX and Tesla have formed special committees of independent directors to discuss the idea at the request of shareholders, and that he cannot take part because he is a conflicted party.

A merger would put Tesla in the same corporate group as Grok developer SpaceXAI (formerly xAI) and the social media platform X, which SpaceX acquired in February.

What Musk said about the talks

• Musk said merging Tesla and SpaceX could bring benefits in areas including superintelligence software, chip design, the Terafab project, robotics, mass to orbit with the Starmind constellation, and connectivity.
• He said the special committees have not reached agreement on the terms of any deal, and there is no guarantee they will.
• He said some people assume a merger is certain, but that this overstates the situation.
• Musk said shareholders must support a deal, and that Tesla's side would need approval from 50% of all shares, not just those who vote — a high hurdle.

SpaceX's AI segment becomes its biggest business

Musk's comments came after SpaceX's third-quarter earnings report. The company said revenue rose 161% from a year earlier to $14.6 billion, driven largely by its "Super Intelligence" AI segment.

That segment brought in $7.6 billion in the third quarter, an 830% increase from a year earlier, making it the company's largest source of revenue. SpaceX said the growth came from new cloud services agreements, the acquisition of Cursor and wider use of its agentic AI model Grok among businesses and consumers.

Combined Bitcoin holdings would top 30,000 BTC

A Tesla–SpaceX merger could also place two large corporate Bitcoin holdings in one company. SpaceX reported holding 18,712 Bitcoin as of June 30, and Tesla held 11,509 BTC on the same date, according to their quarterly filings.

Based on those filings, a combined company would hold 30,221 BTC. That would make it the sixth-largest public company treasury holding Bitcoin, above crypto exchange Bullish. A crypto exchange is a platform where people buy and sell digital assets.

What is confirmed

Musk said during the SpaceX Q3 earnings call that he supports the idea of a Tesla–SpaceX merger. Both companies have set up special committees of independent directors to discuss it. SpaceX reported Q3 revenue of $14.6 billion, up 161% year over year, and $7.6 billion in Super Intelligence segment revenue, up 830%. The Bitcoin figures come from the companies' quarterly filings as of June 30.

What is still unclear

Whether a merger will happen is not known. Musk said the committees have not agreed on terms, that a deal is not guaranteed, and that Tesla shareholders would need to approve it with 50% of all shares. A merger would also need shareholder support on the SpaceX side.

Why it matters

The talks show how closely Musk's companies are tied together and how central AI has become to SpaceX's business, since the Super Intelligence segment is now its largest revenue source. For crypto readers, the discussion matters because a merger would combine two corporate Bitcoin holdings into one much larger treasury.

Sources

• Cointelegraph

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