Tesla SpaceX merger: why Elon Musk seeks $3.5 trillion supercompany

Elon Musk has endorsed the idea of merging Tesla and SpaceX, a deal that would form a $3.5 trillion technology conglomerate covering electric vehicles, rockets, artificial intelligence and robotics. The billionaire said Tuesday that uniting his two firms made growing sense as their operations become increasingly intertwined. Tesla and SpaceX once operated largely as separate businesses. However, Musk's widening ambitions in AI, satellite communications, semiconductor manufacturing and even orbital data centers have opened expanding opportunities for collaboration.

Musk Cites AI and Chip Benefits

"I do think there's a lot of merit to combining the companies," Musk said, citing potential gains in developing advanced AI software, chips, robotics and orbital infrastructure.