Tesla may merge with SpaceX as Musk calls the idea a good one

what happened

Elon Musk said on Tuesday that combining Tesla and SpaceX would be a good idea, and that the two companies have formed special committees to discuss a union. Reuters reports that shares of the Starlink operator rose 8% in extended trading. The combined company would be worth about $3.5 trillion and rank fifth globally, between Microsoft and Amazon, but Musk faces substantial regulatory risks.

The Wall Street Journal reported that Musk gave an order last week to slow a military-grade version of Starlink that Ukraine relies on in its war with Russia. Reuters could not independently verify the report.

Asian markets were otherwise calm: MSCI's Asia-Pacific index excluding Japan gained 1.2%, KOSPI hit a one-week high and Nikkei 225 rose 1.3%. Brent climbed 1.5% to $110.41 a barrel on Middle East supply concerns.

why it matters

The story matters for the technology sector and Tesla shares, since a tie-up would reshape the structure of major companies and raise questions for regulators. Meanwhile, the slump in global AI stocks, including NextDC's sharp drop in Australia, and oil's rise on Red Sea risks and US-Iran talks add volatility to Asian and global markets. Bank Indonesia has also brought forward its policy press conference.

market impact

Tesla and tech stocks: a merger would reshape share structures, while regulatory risks add uncertainty; oil: Middle East risks put upward pressure on Brent.

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