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Elon Musk, Chief Executive Officer (CEO) of SpaceX. / Yonhap

Chief Executive Officer (CEO) Elon Musk has formalized the review of a merger between space company SpaceX and electric vehicle maker Tesla.

Musk, who serves as CEO of both companies, stated during a conference call following SpaceX's earnings announcement on the 20th (local time) that the boards of directors of both firms have each formed special committees to review a merger at the request of shareholders.

He explained that the special committees are composed of independent directors, noting that he cannot participate in the discussions because he is an interested party with a conflict of interest.

Asked about the merits, drawbacks, and obstacles of a merger, he emphasized, "Because it is like tap-dancing in a minefield, I have to answer carefully," but added, "If you ask whether I think this (merger) is a good idea, the answer is 'yes.'"

Citing sectors including software development, semiconductors like Terafab, robotics, and Starlink, he noted that with the advent of "superintelligence" (SI/AI) nearly at hand, a merger between the two companies holds substantial advantages, and the synergies to be gained through collaboration are immense.

At the same time, he stated, "Ultimately, shareholders must support this," adding, "While some assume a merger between SpaceX and Tesla is a done deal, I view that as an overstatement."

In particular, he pointed out that on Tesla's side, there is a considerably high hurdle to clear, such as requiring affirmative votes from 50% of all outstanding shares, not merely among shareholders participating in the vote.

Musk also offered projections that day that revenue from SpaceX's SI division would grow exponentially.

He forecast that annual recurring revenue (ARR) for the SI division, which generated $7.56 billion (around 10 trillion won) in revenue in the third quarter, will reach between $100 billion and $1 trillion by the end of next year.

He further projected that the Starlink satellite internet business could generate hundreds of billions of dollars in annual telecommunications revenue.

He previewed that during Starship's 15th test flight scheduled for next month, attempts will be made to recover both the booster engine and the upper-stage spacecraft.

He emphasized, "If successful, it will mark the first complete recovery of an orbital launch vehicle and a tremendous technological milestone," adding, "I think this is a profound technological milestone in the history of civilized consciousness."

He stated that even if they do not succeed in the 15th test flight, they will ultimately achieve the goal.

                                                                                                                Kim A-yoon