Elon Musk indicated during a Tuesday call with financial analysts that a merger between Tesla and SpaceX is being actively explored, though no agreement has been reached. Musk, who leads both companies, stated he believes combining the two entities would offer significant advantages, particularly in areas such as chip development, artificial intelligence, and software. He emphasized that while special committees at each firm are reviewing the proposal, they have not finalized terms and no transaction is guaranteed. The potential merger would represent one of the largest corporate consolidations in history, given Tesla's market valuation of approximately $1.5 trillion and SpaceX's estimated $2 trillion value. Shares of SpaceX rose 8% in after-hours trading following the announcement, while Tesla's stock increased 2% after a period of stagnation. Musk noted that any merger would require approval from a majority of Tesla shareholders, calling the threshold 'quite a high hurdle.' He also clarified that he is not part of the committees evaluating the deal and described his position as 'conflicted.' The discussion comes as Musk continues to integrate operations across his companies, including the recent launch of Terafab, a joint venture focused on semiconductor manufacturing. SpaceX's cloud computing division, which generated $7.5 billion in revenue last quarter, has emerged as its most profitable segment, though the company as a whole reported a $1.1 billion loss for the year. Starlink contributed $5.2 billion in revenue during the same period. Musk has previously overseen major transactions, including the acquisition of X (formerly Twitter) and the establishment of xAI, further signaling his strategy of consolidating technological efforts under shared infrastructure.