Musk Says a Tesla-SpaceX Merger Is Under Active Consideration
Elon Musk says he likes the idea of merging Tesla and SpaceX, two of his most notable companies, and that a combination is under active consideration. He says special committees within both companies have been formed to examine the move, that certainty should not be assumed, and that shareholders' support would be required.
With Tesla valued at roughly $1.5 trillion and SpaceX at $2 trillion, a combination of the two would mark one of the largest mergers in history.
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Musk put a number on the obstacle himself: at least 50% of Tesla's shareholders would need to approve the merger, which he described as quite a high hurdle to achieve.
He has cleared high hurdles before. Last year a majority of Tesla investors approved a compensation package for him valued around $1 trillion, so shareholder approval is not a fantasy.
The vote isn't the only machinery to watch: Musk says he sits on neither of the special committees considering the merger, and he describes himself as a conflicted party as chief executive of both companies.