From 24/7 Wall St. · AJ Tiarsmith · · 1m
Musk Tesla SpaceX Merger Vote Hurdle
Musk says Tesla-SpaceX merger needs 1.98 billion yes votes to pass.
In brief
Musk says Tesla-SpaceX merger needs 1.98 billion yes votes to pass. Elon Musk admits a Tesla-SpaceX merger would require 1.98 billion yes votes to pass, calling it a high hurdle. Originally reported by 24/7 Wall St..
Musk calls Tesla-SpaceX merger a good idea
Elon Musk says combining Tesla and SpaceX would be a good idea but faces a high hurdle to pass.
“Do I think it would be a good idea? Yes.”
Merger needs 1.98 billion yes votes
Tesla needs 1.98 billion yes votes to pass a merger, a majority of all shares.
“Particularly on the Tesla side, we will need a 50% vote of all shares, not just those who vote, but of all shareholders.”
Why 1.98 billion is hard to reach
Retail investors voted only 28% of shares in 2025, making a 1.98 billion vote difficult.
“Retail investors voted only 28% of their shares in the 2025 proxy season.”
Special committees in talks
Both companies formed special committees but have no agreement on merger terms.
“The special committees have not reached agreement on the terms of any transaction.”
Tesla's financial results
Tesla's Q3 operating income fell to $718 million while SpaceX reported $14.60 billion revenue.
“Tesla's third-quarter filing shows operating income fell to $718M from $1.62B.”
Market expectations for merger
J.P. Morgan expects a SpaceX-led merger at a 30% to 35% premium, but no offer exists.
“J.P. Morgan expects any deal to be SpaceX-led and all-stock, at a 30% to 35% premium.”
The main idea
Elon Musk admits a Tesla-SpaceX merger would require 1.98 billion yes votes to pass, calling it a high hurdle.
