Quote - Could SpaceX and Tesla possibly merge? Let's see what everyone thinks.

Reuters, October 21 - Elon Musk (link) said on Tuesday that merging his two companies — SpaceX SPCX.O and Tesla TSLA.O — would be a "good idea", and noted that both sides have set up a special committee to discuss the merger (link).

Following the announcement, the aerospace and technology company's share price rose 8% in after-hours trading.

Here are comments from various sectors regarding the proposed merger:

Daniel Newman, CEO of The Futurum Group:

“Ever since SpaceX announced its initial public offering (IPO), this merger has been inevitable... Ultimately, by combining the two companies’ strengths in space, artificial intelligence, autonomous driving, and robotics, they could become the world’s most advantaged enterprise for future development.”

Brian Mulberry, Chief Market Strategist at Zacks Investment Management:

“This has been a well-known merger possibility, and both companies seem to be building a merger rationale based on existing synergies, which will help achieve greater operational efficiency in the future.

“While the merger still requires shareholder approval, considering Elon mentioned it twice during the recent conference call, it appears things are moving in that direction.”

Yuri Khodjamirian, Chief Investment Officer at TEMA ETFs:

“We think the merger makes sense — it consolidates all business under the same roof, and both companies are already advancing major joint projects, such as Terrafab.

“We consider the formation of a special committee a positive step, and all parties seem to be making an active effort to address governance challenges.”

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