Tesla's profit has dropped sharply, and Elon Musk is simultaneously working toward combining the electric-car maker with SpaceX, according to Dagens Nyheter. The Swedish newspaper reports that the proposed tie-up would create a group valued at $3.5 trillion.
Musk has said the two companies could become one, and Swedish outlets including Svenska Dagbladet, Placera.se and Omni report that discussions about a large-scale merger are under way. Västerbottens-Kuriren also reports that Musk backs a fusion of the two businesses.
The reporting places the merger talks alongside a steep decline in Tesla's earnings, though the source material does not specify the size of the profit fall or the period it covers. Dagens Nyheter frames the combination as a giant deal that would bring the carmaker and the rocket company under a single corporate structure.
Tesla and SpaceX have long operated as separate companies under Musk's leadership, and the reported valuation of $3.5 trillion would place the combined entity among the largest companies in the world. The reports do not detail how a merger would be structured, what it would mean for existing shareholders, or what regulatory approvals would be required.
The source material also does not indicate whether any agreement has been reached or how far along the discussions are. It is not clear from the reporting when a deal might be announced or whether the talks could still fall through.
What to watch next: whether Tesla or SpaceX confirms the merger discussions, and how Tesla's full earnings figures compare with prior periods.
