Musk signals openness to Tesla-SpaceX merger as SpaceX turns profitable

Elon Musk has characterised a potential merger between Tesla and SpaceX as a "good idea," signalling openness to combining his two flagship companies. The comments come as SpaceX achieved a significant milestone by posting its first profit following its public market debut, strengthening the company's financial position.

Barclays analysts have suggested that any formal announcement of such a merger could come before Tesla's annual shareholder meeting scheduled for December. The prospect of combining the electric vehicle manufacturer with the space exploration and satellite communications company has long been a topic of speculation among investors and industry observers.

SpaceX's return to profitability marks a turning point for the company, which has invested heavily in developing reusable rocket technology and expanding its satellite internet service, Starlink. The financial performance demonstrates the growing viability of the aerospace sector's commercial operations, potentially addressing concerns about the merged entity's profitability.

A Tesla-SpaceX combination would create an unprecedented conglomerate spanning automotive, energy, artificial intelligence, and space technology sectors. Such a transaction would represent one of the largest corporate mergers in recent history and would require regulatory approval from multiple jurisdictions, including Singapore's relevant authorities given regional interests in space commerce.