Tesla and SpaceX took the first step towards the merger

Elon Musk said on Tuesday that it would be a good idea for the two companies, SpaceX and Tesla, to merge, and the companies have created separate committees to discuss the possibility of the merger - Reuters reports. In response to the news, the shares of the aerospace and technology companies rose by 8 percent in after-market trading. SpaceX had previously reported that it had achieved profitability for the first time since listing on the stock exchange. Musk also stated that he expects annual revenue between 500 billion and 1000 billion dollars by the end of 2027, as the growth of artificial intelligence has increased demand for data center capacity. Musk had previously raised the possibility of merging SpaceX and Tesla to shareholders, pointing out that the activities of the two companies are increasingly related to each other. Recently, there has been increasing attention to the possibility that the aerospace company could acquire the electric car manufacturer. Tesla unveiled the final version of the Roadster armed with special exhaust pipes, for which another two years are to be waited. "I think it would be a good idea, but it really depends on the two separate committees," said Musk, officially confirming for the first time that the companies are holding formal discussions about the merger. "Since I am a party involved, I cannot participate in the discussions of the committees," he added during the conference call with investors. The committees are composed of independent directors. Musk stated that the committees were formed at the request of the shareholders. However, approval of a potential agreement would also require the support of the shareholders in the end. Musk warned that it would be too early to treat the merger of SpaceX and Tesla as a done deal. The committees have not yet agreed on the terms of the transaction, and it is not certain that they will ever reach an agreement. In the meantime, Tesla shares rose by 1.8 percent in after-market trading. The world's richest man, Musk, owns nearly 20 percent of Tesla and slightly less than half of SpaceX. Analysts believe that the merger would allow him to exert control over the combined company.