Futures orbit around SpaceX as Tesla merger talk cheers investors

Elon Musk has established a special committee to explore merging SpaceX with Tesla, a deal he described as a "good idea" that would create the largest merger in history valued at roughly three and a half trillion dollars, according to CNBC. Musk said he represents a conflicted party and will not participate in discussions. Shares of both companies rose in premarket trading.

An existing joint venture called Terafab plans to test its first SRAM chip by June next year, targeting one terawatt of annual computing power, and Musk said a full merger would accelerate cooperation on superintelligence software. Gene Munster of Deepwater called the deal a "slam dunk" for shareholders, while analysts noted the aggressive timeline depends on securing equipment from suppliers including ASML, Applied Materials and KLA. SpaceX separately reported third-quarter revenue jumping 161 percent, though MoffettNathanson flagged enormous capital demands ahead.

The Wall Street Journal reported that Musk ordered a slowdown of a Starlink version used by Ukraine in its war against Russia, citing U.S. officials. Conflicting accounts exist about how the decision was reached, with Musk previously stating on X that it was a U.S. military and presidential call.

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Futures orbit around SpaceX as Tesla merger talk cheers investors — CNBC