Musk wants to merge SpaceX and Tesla. Stocks soared, a giant worth $3.5 trillion may be created

Elon Musk announced that special committees from SpaceX and Tesla are discussing a potential merger, which he supports but emphasizes is ultimately up to the companies' representatives. He noted that due to conflicts of interest, he cannot directly participate in negotiations, and the terms of the merger are not yet agreed upon. A merger could create a large conglomerate in AI, robotics, energy, satellite communications, and transportation. Musk highlighted the benefits of collaboration in AI software, chip design, and robotics. However, regulatory challenges may arise due to SpaceX's contracts with the Pentagon and Tesla's operations in China. Following Musk's comments, shares of both companies saw an increase.