Tesla and SpaceX formed special committees to explore a possible merger, Elon Musk announced Tuesday during SpaceX’s quarterly earnings presentation. The move brings the idea to a formal evaluation within both companies, although there is still no agreement on the terms of a transaction and no guarantee it will happen.
The committees were formed at the request of shareholders and are made up of independent directors. Musk, who runs both companies, explained that he is not part of those groups and is not involved in their discussions because of his conflict of interest. He did not identify the members.
Although he publicly backed the possibility of combining the companies, the businessman cautioned that it would be an exaggeration to treat the merger as a certainty. His support does not replace the committees’ work: they would first have to define a proposal and then submit it for shareholder approval.
Tesla’s shareholder vote would be a key hurdle
Musk said that on Tesla’s side, the backing of 50% of all shares would be required, not just those participating in the vote. The distinction matters: the threshold he described is calculated based on the total number of shares, not just the votes cast.
As an argument in favor of the combination, Musk pointed to opportunities for collaboration in artificial intelligence, chip design, robotics, connectivity, and the ability to take cargo into orbit. Those possibilities are his rationale for exploring the deal, not benefits already realized or commitments approved by the companies.
For now, the announcement confirms exploratory talks, not a purchase or an integration underway. The next step Musk described is up to the committees: finding terms they can present to shareholders for a decision.
Image: Elon Musk during a conference in March 2024. File photo: Wcamp9 / Wikimedia Commons, CC BY 4.0.
