Elon Musk has formalized the review of a potential merger between aerospace company SpaceX and electric vehicle maker Tesla.

Speaking on an earnings conference call following SpaceX's earnings announcement on the 20th (local time), Musk stated that special committees to review the merger have been formed on the boards of both companies at the request of shareholders.

He explained that the special committees are composed of outside directors, and because he is a conflicted party, he cannot participate in the discussions.

Musk likened his exclusion from the merger discussions to a "bizarre Kabuki dance."

When asked about the pros, cons, and obstacles of a merger, he said, "It's like tap-dancing in a minefield, so I have to answer carefully," but emphasized, "If you ask me whether I think this is a good idea, the answer is yes."

Mentioning fields such as software development, semiconductors like TeraFab, robotics, and Starlink, he noted that with superintelligence (SI / artificial intelligence) nearly within reach, there are significant advantages to merging the two companies, and the synergies achieved through cooperation would be substantial.

At the same time, he stated, "Ultimately, shareholders need to support this," adding, "Some people assume that a merger between SpaceX and Tesla is a done deal, but I think that is an overstatement."

He particularly pointed out that there is a fairly high barrier to clear on Tesla's side, such as requiring the approval of 50% of all shareholders, not just those who participate in the vote.


Musk also offered a forecast on this day that SpaceX's SI division revenue would grow exponentially.

He projected that the annualized recurring revenue (ARR) of the SI division, which generated $7.56 billion (approx. 10 trillion won) in the third quarter, will be between $100 billion and $1 trillion by the end of next year.

Immediately after stating these figures, Musk turned to Chief Financial Officer Brett Johnson and joked, "I don't want to give Brett a heart attack."

Regarding the satellite internet business Starlink, he also projected that hundreds of billions of dollars in annual telecommunications revenue would be possible.

He previewed that the 15th test flight of Starship, scheduled for next month, will attempt to recover both the booster engine and the upper stage hull.

"If successful, it will be the first case of an orbital launch vehicle being fully recovered and a monumental technical milestone," he emphasized, adding, "I think this is a profound technological milestone in the history of civilizational consciousness."

He showed confidence by stating that even if they do not succeed in this during the 15th test, they will eventually reach that goal.

In response to a question about the launch schedule for "Starbase Louisiana," which is being pursued as a new mega-scale spaceport, he replied that while they have set an internal target for a first launch in 2028, it is likely to be 2029 in reality.

When asked about the funding burden associated with artificial intelligence (AI) infrastructure investments, Musk dismissed concerns related to investment, stating, "You would be hard-pressed to find a company anywhere in the world as capital efficient as SpaceX."
 
(Photo: Getty Images)