Elon Musk is considering merging Tesla and SpaceX.

Special committees within both companies have been formed to examine the move, he said during a call with financial analysts to discuss SpaceX’s latest results.

"The special committees have not reached agreement on terms of any transaction and there's no guarantee that they will," he said. "But I do think there is a lot of merit to merging and a lot to be gained."

With Tesla valued at roughly $1.5trn (£1.1trn) and SpaceX at $2trn, a combination of the two companies would mark one of the largest mergers in history.

AJ Bell investment director, Russ Mould, said: ““When SpaceX joined the stock market there was a lot of talk of an eventual Musk Corp to combine all of Elon Musk’s various ventures under one roof. The latest developments show this chatter was more than hot air.

“Having previously rolled the social media platform and AI lab xAI into SpaceX, folding in Tesla was the next logical step. Tesla’s investment case had arguably already moved beyond the simple manufacture of electric vehicles to its grander ambitions in automation and AI.

“Plus, Tesla and SpaceX are already collaborating in several areas, meaning a merger will just make existing ties official rather than representing a dramatic shift for either company."

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