SpaceX-Tesla Merger Talks Begin

SpaceX and Tesla have formed independent special committees to consider a possible merger, the first formal step toward combining Elon Musk’s two companies. The talks follow shareholder requests and come as the companies already overlap in vehicles, autonomy, rockets, Starlink and AI. They are also collaborating on Terafab, a planned chip-manufacturing project. Musk endorsed a merger, saying it could allow closer work on AI software, chip design, robotics and connectivity. He said his dual role makes him conflicted, so he cannot take part in the committees’ discussions. At current market values, the companies would be worth about $3.5 trillion together. No terms have been agreed, and any deal would need shareholder approval.