Elon Musk is analyzing the merger between Tesla and SpaceX, a transaction that could create one of the largest companies in history

Tesla and SpaceX are considering a potential merger, Elon Musk said on Tuesday during a conference call on the aerospace company’s quarterly results. The billionaire said he thought the idea was good, but noted that any transaction would depend on shareholder approval and was not certain.

Special committees have been established at both companies to examine the merger. They have not yet determined the terms of a transaction, and there is no guarantee that negotiations will lead to an agreement. Musk is not a member of the committees and described himself as a “conflicted party,” since he leads both Tesla and SpaceX.

Tesla is valued at approximately $1.5 trillion, while SpaceX is valued at around $2 trillion. Combining them could represent one of the largest corporate mergers in history. SpaceX, known for its rockets and Starlink satellites, has expanded into artificial intelligence infrastructure and cloud computing services.

Cloud activities generated $7.5 billion, while Starlink reported revenue of $5.2 billion. However, the company recorded losses of $1.1 billion this year. A merger would have to be approved by shareholders, including at least 50% of Tesla investors. Relations between the two companies have intensified through the joint Terafab project, focused on chip manufacturing.