Elon Musk has signaled his support for a potential merger between SpaceX and Tesla, suggesting that combining the two tech giants could offer significant advantages in artificial intelligence, robotics, and chip design. The announcement coincided with SpaceX reporting its first quarterly profit since going public, a major milestone driven largely by the massive growth of its "Super Intelligence" AI division. As SpaceX pivots to capitalize on high-demand cloud computing deals with major players like Anthropic and Google, the company’s financial trajectory has shifted from a $1.1 billion loss last year to a $4.4 billion profit this past quarter.

Despite Musk’s enthusiasm, he cautioned that a merger is far from guaranteed, noting that independent committees at both companies are currently reviewing the proposal. Due to his dual leadership roles and significant ownership stake in both firms, Musk has recused himself from these discussions to avoid conflicts of interest. Any potential deal would also face a high bar, requiring approval from a majority of all Tesla shareholders. While investors reacted positively to the news—sending SpaceX shares up nearly five percent in after-hours trading—Musk emphasized that the path forward remains complex and uncertain.