Tesla also received a slight boost this week after unveiling its new Tesla Roadster 2 electric sports car through a demonstration involving pressurized air tanks that allowed the vehicle to briefly lift off the ground and perform aerial stunts.
The prospective share giveaway marks a rare display of philanthropy from Musk, who has previously criticized traditional aid organizations and taken credit for dismantling USAID, the world's largest single provider of humanitarian aid.
Musk stated that he believes there is a lot of merit to combining the companies, though he acknowledged the hurdles involved in achieving the move and noted that his conflicts of interest prevent him from participating in special committee discussions.
Separately, Musk recently agreed earlier this month to co-lead a Pentagon project on the future of warfare, returning to government work after serving as the de facto leader of the department of government efficiency, known as Doge.
In other developments, Musk posted on X that giving shares directly to the people is the way, describing the prospective share giveaway as stakes in the future economy.
Disruptions in service to Starshield allegedly led to several failed Ukrainian combat missions and increased the country's vulnerability to Russian drone attacks, highlighting the global reliance on Musk's internet infrastructure products.
The potential consolidation surfaced while investors speculated about merging Tesla, the second-most valuable part of the mogul's empire, following a financial quarter that outperformed Wall Street projections.
Tech mogul Elon Musk has confirmed he is considering a merger between Tesla and SpaceX, addressing recent investor speculation regarding the two entities.
The developments coincide with Tesla preparing to reveal its latest earnings this week, with Musk scheduled to deliver the quarterly report on Wednesday.