Tesla and SpaceX Form Committees to Explore Merger Centered on Chip Joint Venture

Tesla and SpaceX are formally evaluating a potential corporate merger under a unified entity, with independent special committees formed at both companies. The transaction centers around Terrafab, a joint semiconductor venture targeting initial chip production by 2028. However, analysts note significant risks, as SpaceX, valued at $2 trillion against $33 billion in trailing revenue, could tap Tesla's $45 billion cash balance amid Tesla's 56% plunge in quarterly operating income. Elon Musk called the deal a good idea but noted it requires approximately 1.98 billion affirmative votes from Tesla shareholders.