SpaceX, Tesla Form Special Committees to Review Merger
Elon Musk said Tuesday that Tesla and SpaceX have each formed special board committees to discuss a possible merger. He spoke on SpaceX's third-quarter earnings call.
- Musk said the committees have not agreed on terms and may not.
- Musk says he is excluded from talks as a conflicted party.
- 50% of all Tesla shares must approve, Musk said, calling it a high hurdle.
- $14.6B in quarterly SpaceX revenue, up 161% year over year.
Why it matters: Musk endorsed the idea, citing gains in AI software, chip design and robotics. The companies already overlap, and Tesla invested about $2 billion in a SpaceX AI subsidiary in January.
- Musk has already merged X into xAI and xAI into SpaceX.
How 12 sources split on this story
Center coverage, 5 sources: The center reports Musk's endorsement of the merger as a good idea, with his caveats.
Left coverage, 7 sources: The left focuses on Musk consolidating his empire while noting governance questions and the Ukraine Starlink dispute.
What’s next: The independent-director committees will decide whether to propose terms. Any deal then goes to shareholders of both companies.
- Barclays suggested a deal could be announced before Tesla's December 3 meeting.
- Who sits on each special committee?
- Would a combined company change the Starlink dispute involving Ukraine and the U.S. government?
