SpaceX and Tesla Have Formed Committees to Discuss Potential Merger, Musk Says
Elon Musk said the committees are weighing a deal that would need Tesla shareholder approval and could unite two companies valued at more than $3 trillion.
- 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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The operation would bring together the businesses of electric vehicles, rockets, satellites and artificial intelligence.
Elon Mask revealed that two committees had been set up to study the integration of Spice X and Tesla into an entity that could amount to $3.6 trillion, in conjunction with the announcement of strong financial results for SpaceX and a 9% increase in shares.
Tesla's profits are halved and car sales are declining. At the same time, Elon Musk wants to merge Tesla with SpaceX into a company worth $3.5 trillion. Analysts point to increased financing opportunities as a reason for the merger.
The Seattle Times
The RecordA SpaceX-Tesla megamerger could benefit both companies and Elon Musk’s personal fortune
Stocks of Elon Musk's two biggest companies are rising Wednesday after he suggested a combination was in the works to form a trillion dollar colossus in possibly the biggest deal...
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