Musk announces merger exploration

During SpaceX's Tuesday earnings call, Elon Musk said Tesla and SpaceX have created special committees of independent directors to discuss a potential merger.

Musk cannot lead the committees

Musk, who runs both companies and owns billions in stock of each, said he cannot be part of the exploratory groups because shareholders must decide.

Tesla shareholders need fifty percent approval

Musk said clearing the bar for merger approval would be quite a high hurdle, requiring a fifty percent vote of all Tesla shares, not just those who vote.

“we will need a 50% vote of all shares, not just those who vote, but of all shareholders.”

Companies already collaborate extensively

SpaceX and Tesla work together on artificial intelligence software, chip design, manufacturing, robotics, Starlink satellite connectivity, and launching payloads into orbit.

Musk sees merit but no certainty

Musk said combining the companies makes sense in the superintelligence era, but cautioned investors not to assume a merger is certain to happen.

“I don't think we should necessarily assume that a SpaceX and Tesla merger is a certainty.”