Musk, who serves as CEO of both companies, said the special committees were formed at the request of shareholders and are made up of independent directors (although he did not name them). He also noted that he is not a member of any of the committees nor does he participate in any of the discussions.
“As I am a party to the conflict, I cannot participate in the discussions of the special committees,” Musk said. “So it’s a weird kabuki dance where two groups of people are talking and I can’t participate in the conversation.”
The groups have not agreed on the terms of any transaction and there is no guarantee they will do so. “At the end of the day, shareholders have to support this,” he continued. “And particularly on the Tesla side, we will need a vote of 50 percent of all shares, not just of those who vote, but of all shareholders. And that is a pretty high hurdle to try to reach.”
That said, Musk called the possibility of a Tesla-SpaceX merger a “good idea.” Continuous:
I think there is a lot of merit in combining companies, since we are practically at the superintelligence singularity. And there is a lot to be gained by cooperating on superintelligence software development, chip design, TeraFab, obviously robotics, mass to orbit with the Starmind constellation and connectivity. So I think it would be a good idea, but it really depends on the special committees of both companies. They have to propose something and then it will be put to a vote by the shareholders.
A Tesla-SpaceX merger would be a blockbuster corporate deal that would create a mega-entity valued at more than $3.6 trillion. But combining Musk’s car and energy company with his artificial intelligence and rocket company would not be without tradeoffs. Much depends on which company absorbs the other. To buy SpaceX, Tesla would have to create millions of new shares, which for current Tesla owners would mean owning a smaller slice of a much larger pie. SpaceX’s launch goals require tens of billions of dollars each year, an additional expense that could strain Tesla’s ability to build new car factories and battery plants.
That said, most Wall Street analysts and legal experts believe SpaceX would acquire Tesla (or absorb it through a stock swap) and not the other way around. Since its IPO, SpaceX has maintained a higher valuation than Tesla. A merger in that direction would allow SpaceX shareholders to have majority control of the combined mega-entity. Some Tesla shareholders may oppose this deal.
But it would also create a company for those who believe in Musk’s vision of the future (robot cars, humanoid robots, artificial intelligence superintelligence and human habitats on Mars) in which to place their investments. And the Tesla shareholder approved Musk’s huge pay package last year, even after a Delaware judge threw it out for lack of independence.
Earlier this month, Barclays published a client note suggesting that a potential Tesla-SpaceX combination could be announced before Tesla’s annual shareholder meeting scheduled for December 3, 2026.
