SpaceX and Tesla Have Formed Committees to Discuss Potential Merger, Musk Says
Musk said the companies formed independent director committees after shareholders requested merger talks, and any deal would need approval from Tesla holders.
- Elon Musk announced that Tesla and SpaceX have formed "special committees of independent directors" to explore a potential merger, though he cannot participate due to conflicts of interest.
- SpaceX and Tesla have increasingly collaborated on chips, robotics, and connectivity, prompting the current exploration of a formal combination between the two companies.
- A combination would be massive, with SpaceX valued at more than $2 trillion and Tesla at nearly $1.5 trillion; Musk noted clearing the required 50% shareholder approval would be "quite a high hurdle."
- Tech analyst Gene Munster of Deepwater Asset Management believes there is a 95% chance a deal occurs in the next two years, saying "Believe me, shareholders would support this."
- Barclays previously suggested a potential combination could be announced ahead of Tesla's annual shareholder meeting on December 3, 2026, though Musk emphasized the committees have not reached agreement on terms.
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123 Articles
US technology billionaire Elon Musk announced on Tuesday that he supports a merger between his space company SpaceX and electric car manufacturer Tesla.
In addition to the electric car and the conquest of space, the two companies are engaged in the race for artificial intelligence, with pharaonic projects greedy in investments.
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Tesla and SpaceX take first step towards merger, would dilute all shareholders
Tesla and SpaceX have both formed special committees within their corporate boards to explore the possibility of merging the two companies according to Elon Musk, who is CEO of both companies. The merger could have big consequences not just for Tesla and SpaceX shareholders, but could dilute the retirement savings of everyone with exposure to major stock indices. more…
Speculations about a merger between Tesla and SpaceX get a foundation: Major shareholder and Group CEO Musk has committees set up for the merger. He himself is not allowed to participate, he explains, but he thinks the idea is good.
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