Musk calls Tesla-SpaceX merger a ‘good idea’ as SpaceX posts first profit as a public company

Elon Musk said on Tuesday that a merger of his two companies SpaceX and Tesla would be “a good idea” and that they had formed special committees to discuss a union, sending shares of the space and technology company up 4.9% in extended trading. The company earlier posted its first profit as a public company and Musk said it was tracking an annual revenue run rate of up to $1 trillion. Musk has in the past tantalized shareholders with the idea, citing growing overlap between the companies.

Speculation about SpaceX buying the EV maker has gained traction recently, with Barclays suggesting last week that a deal could be announced before Tesla’s annual meeting in December.