Musk confirms special committees discussing possible Tesla SpaceX merger

Elon Musk, chief executive of both Tesla and SpaceX, stated that the two companies have formed special committees to discuss a possible merger. The announcement came during SpaceX's third quarter earnings call on Tuesday.

Musk emphasized that the committees have not reached agreement on the terms of any transaction. He noted there is no guarantee the parties will reach an agreement. Despite the lack of finalized terms, Musk described the potential combination as a "good idea." He added that the decision rests with the special committees of both organizations.

Barclays released a client note earlier in the month proposing that a deal between Tesla and SpaceX might be revealed before Tesla's earnings.