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Technology · North America

Musk pushes Tesla-SpaceX combination after SpaceX reports first profit

Elon Musk advocated combining SpaceX with Tesla after SpaceX reported its first profit as a public company. The Japan Times said the two companies are valued at almost $3.5 trillion together and that Musk urged care when discussing the proposal.

AI-assisted synthesis · Based on 4 independent reports from 7 outlets · Article text read from 1 of 4 reportsHow it's made

View timeline · 6 entries
7 outlets2 regionsLatest reporting 2 min read
Coverage: Center OnlyL 0 · C 6 · R 0 · 1 unrated
File photo
Photo: Debbie Rowe / Wikimedia Commons (CC BY-SA 3.0)

What happened

Key facts

  • SpaceX reported a profit (per The Japan Times, lasvegassun.com, kokomotribune.com).
  • The Japan Times said Tesla and SpaceX together were valued at almost $3.5 trillion (per The Japan Times).
  • The Japan Times described the proposed combination as potentially the biggest merger ever (per The Japan Times).
  • Musk said he had to be thoughtful about what he said when asked about the proposed merger (per The Japan Times).
  • Musk had previously raised the merger idea with shareholders, citing growing overlap between the companies (per The Japan Times).
  • Yahoo's headline said SpaceX and Tesla formed committees to explore a merger, according to Musk (per Yahoo, The Japan Times, lasvegassun.com).
  • The Winnipeg Free Press and 10TV headlines said SpaceX's satellite and computer leasing businesses soared as the company turned a profit.

The brief

SpaceX reported its first profit as a public company, and Elon Musk advocated combining the company with Tesla, The Japan Times reported. The proposed merger would bring together businesses the outlet valued at almost $3.5 trillion. The Japan Times described the deal as potentially the biggest merger ever. Musk discussed the idea during a call about SpaceX’s results.

When asked about combining the companies, he said he needed to be thoughtful about his words, according to The Japan Times. The outlet also reported that he had earlier raised the possibility with shareholders, pointing to growing overlap between the businesses.

The proposal is not presented as a completed transaction: The Japan Times describes Musk advocating a combination, while headlines from Las Vegas Sun, Kokomo Tribune and U.S. News & World Report characterize his comments as a hint about a possible merger.

Yahoo’s headline separately says SpaceX and Tesla formed committees to explore a merger, attributing that information to Musk. The profit is another central part of the news. The Japan Times identifies it as SpaceX’s first since becoming a public company.

Headlines from the Winnipeg Free Press and 10TV say the company turned a profit after a string of losses and point to growth in its satellite and computer leasing businesses. Those headlines do not provide further financial figures. The Japan Times said Musk’s comments came after a strong quarter for SpaceX, describing the results as far above expectations.

The account links the merger discussion to Musk’s stated view that the businesses increasingly overlap, but does not detail the areas of overlap or provide terms for a combination. The companies’ combined valuation, the scale of the proposed deal and the profit report frame the significance of the discussion.

Musk’s caution when answering the question and the separate headline claim about committees provide the available indications of how the proposal is being discussed; neither establishes that the companies have agreed to merge.

Why it matters

  • A proposed combination would involve SpaceX and Tesla, which The Japan Times valued at almost $3.5 trillion together.
  • The Japan Times called the potential deal the biggest merger ever, indicating the scale of the proposal as described by the outlet.
  • SpaceX reported its first profit as a public company, a milestone reported alongside Musk’s merger comments.
  • Musk cited growing overlap between the companies when previously raising the idea with shareholders, according to The Japan Times.

What to watch next

  • Whether SpaceX and Tesla form or use committees to explore a merger, as Yahoo’s headline says they did, according to Musk.
  • Whether Musk discusses the possible combination further after saying he needed to be thoughtful when asked about it.
  • Whether SpaceX reports further profits after its first as a public company.
  • Whether the companies disclose terms for a combination; none are stated in the reporting.

How it's being covered

Coverage analysisShow details
7 source articles · 7 unique outlets · 4 distinct reports
Outlet political mix: Center Only· 6 Center · 1 unrated
Where the outlets are based: US/Canada 57% · Unknown 29% · Other 14%
Outlet political mix
Center Only
Left
Center
Right
0 outlets
6 outlets
0 outlets
The marker shows coverage balance: each unique outlet counts once. 1 unrated outlet is not included.
Geography
Where the outlets covering this story are based.
7 unique outletsDominant coverage: US/Canada
Coverage imbalance
  • Coverage is currently concentrated among Center-rated outlets (6 of 6 rated sources); comparatively few Left or Right-rated outlets have published on the event.
How we measure coverage

One source is from a wire service (AP, Reuters, AFP or Bloomberg), whose reporting other outlets often republish.

How outlets' accounts compare

Updat3 does not yet have enough full reports to compare how outlets framed this story.

Timeline

Developments from this story's sources, dated background we compiled and fact-checked, and our earlier coverage. Each row says which.
  1. Elon Musk founded SpaceX.
    Background · compiled and fact-checked by Updat3
  2. Elon Musk joined Tesla as an early investor and board chairman.
    Background · compiled and fact-checked by Updat3
  3. The companies have remained legally distinct, with different ownership structures: Tesla became publicly traded on the Nasdaq in 2010, while SpaceX remained privately held.
    Background · from our historical context
  4. Tesla agreed to acquire SolarCity, whose chairman was Elon Musk.
    Background · compiled and fact-checked by Updat3
  5. Tesla shareholders approved the acquisition of SolarCity.
    Background · compiled and fact-checked by Updat3
  6. SpaceX launched its first 60 operational Starlink satellites.
    Background · compiled and fact-checked by Updat3

How we got here

Before the current proposal, Elon Musk had already raised the possibility of combining Tesla and SpaceX with shareholders, citing growing overlap between the companies; the available account does not date that earlier discussion. The companies began as separate ventures: SpaceX was founded in 2002, and Tesla was incorporated in 2003, before Musk joined Tesla’s board in 2004.

In June 2016, Tesla proposed acquiring SolarCity, a solar-energy company whose chairman was Musk; Tesla shareholders approved the acquisition in November 2016. The companies have remained legally distinct, with different ownership structures: Tesla became publicly traded on the Nasdaq in 2010, while SpaceX remained privately held.

Related developments1 story

Original sources

4 of 7 articles · US/Canada · Show all

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