Tesla and SpaceX have set up special committees to discuss a possible merger, Elon Musk said during SpaceX's third-quarter earnings call on Tuesday. Musk, who is CEO of both companies, said the committees were formed at the request of shareholders and are made up of independent directors, though he did not name them.
Musk said he is not a member of either committee and is not involved in the discussions. "Because I'm a conflicted party, I can't actually be in the discussions of the special committees," he said. The groups have not agreed on any transaction terms, and there is no guarantee they will.
Musk calls Tesla-SpaceX merger 'a good idea'
Musk said combining the two companies has "a lot of merit" as they work on superintelligence software, chip design, the TeraFab, robotics, mass to orbit with the Starmind constellation, and connectivity. "I think it would be a good idea, but it's really up to the special committees of both companies," he said.
He also stressed the high bar for approval. "At the end of the day, the shareholders have to be supportive of this," Musk said, adding that on the Tesla side the deal would need a 50 percent vote of all shares, not just those who vote. He called that "quite a high hurdle."
- Special committees of independent directors were formed at shareholders' request.
- Musk is not on either committee and is not part of the talks.
- No agreement on deal terms has been reached, and there is no guarantee one will be.
- Musk called a merger 'a good idea' but said shareholders must support it.
