Tesla and SpaceX form committees to explore possible merger

The move marks a preliminary step toward combining two companies led by Musk, who is chief executive of both Tesla and SpaceX. The available reporting does not establish a transaction structure, agreed terms, timetable or final valuation.

The Verge reported that the special committees had not reached agreement on the terms of any transaction and that there was no guarantee a merger would occur. Those conditions leave the discussions short of a merger agreement.

According to the South China Morning Post, Musk said he saw merit in combining the companies and cited potential cooperation in developing superintelligence software. The report also described the committee process as a preliminary step toward a possible deal.

Fortune reported a potential transaction value of $3.5 trillion. That figure is not established as an agreed or final valuation: the supplied evidence identifies the merger as still under exploration and does not establish its structure, terms or timing.

The available sources also do not establish whether the special committees will recommend or approve a transaction, or whether the companies will ultimately merge. For now, the confirmed development is the creation of committees to examine a possible combination, rather than an announced deal.