Musk backs SpaceX-Tesla merger as rocket company swings to $4.4bn profit

WASHINGTON Nightpost Correspondent

Elon Musk has thrown his support behind a potential merger between SpaceX and Tesla, describing the combination of his rocket and electric-vehicle companies as having considerable strategic logic given their overlapping work in artificial intelligence.

The remarks followed SpaceX posting net income of $4.4 billion for the July-to-September quarter, a dramatic reversal from a loss of $1.1 billion in the same period a year earlier. The two companies are said to be actively exploring what would rank as the largest corporate merger in history.

However, the proposed deal faces significant complications. Tesla's heavy reliance on manufacturing in Shanghai means China already holds considerable leverage over Musk's broader business empire, a factor that analysts say could complicate any restructuring of his corporate holdings and cloud the prospects of a successful tie-up.

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• The Hindu Business
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