Musk Says SpaceX-Tesla Merger Talks Enter Independent Review
Elon Musk said independent director committees at SpaceX and Tesla are examining a possible merger, but no terms have been agreed. He called the idea a “good…
Elon Musk says the spacex tesla merger elon discussions have moved into formal review by independent director committees, putting a possible tie-up between the two companies before investors without any agreed terms. Musk called a merger a “good idea,” but said shareholders would ultimately have to support a proposal.
The committees were formed at the request of shareholders, Musk said during SpaceX’s third-quarter earnings call. He said he cannot take part in their discussions because he is a “conflicted party.” The talks remain exploratory, and neither company has disclosed deal details.
That leaves investors weighing a possibility, not a transaction. The distinction matters: Musk’s endorsement does not settle the terms, shareholder backing or the direction of any merger.
Shareholder approval remains a hurdle
Musk said Tesla would need “a 50 percent vote of all shares, not just those who vote, but of all shareholders.” He described that threshold as “quite a high hurdle to try to achieve.” The committees must develop a proposal before shareholders can consider it.
“At the end of the day, the shareholders have to be supportive of this,” Musk said, according to The Verge’s account of the call. He said he was not on either committee and was not involved in the discussions.
The companies’ results offer a snapshot of what could be brought together. SpaceX reported sales of $14.6 billion in its third quarter, up 161% from a year earlier, and net income of $4.4 billion, according to The Motley Fool. Its AI business generated $7.6 billion in revenue, while Starlink produced $2.4 billion in operating income.
Growth came with substantial spending. SpaceX spent $19.6 billion on capital expenditures during the quarter and expected to spend another $35 billion to $40 billion in the fourth quarter, The Motley Fool reported.
Different results shape the merger debate
Tesla reported revenue of $28 billion, roughly flat year over year, while net income fell 43% to $787 million, The Motley Fool reported. The company’s vehicle deliveries slipped slightly, and operating expenses climbed as it shifted more attention to AI and robotics.
CNBC’s report on Tesla’s earnings gave a more detailed breakdown: automotive revenue fell 3% from a year earlier to $20.56 billion, while revenue from services and other sales rose 33% to $4.61 billion. Tesla attributed pressure on automotive revenue and profits to lower average selling prices and difficulty securing enough battery supplies to meet orders.
There were operational developments too. Tesla launched Cybercab in Austin in September and said “cumulative unsupervised Robotaxi miles grew eightfold quarter over quarter,” according to The Motley Fool. It also began producing Optimus robots on its Fremont production lines.
Those businesses could bring different priorities and spending needs under one corporate structure. For Tesla shareholders, the question is not simply whether the companies can combine, but what a proposed deal would mean for the value and ownership of the business they already hold. The Verge reported that analysts and legal experts it cited generally expected SpaceX to acquire Tesla, or absorb it through a stock swap, though no terms have been agreed.
Musk said he sees potential in cooperation on AI software, chip design, robotics and connectivity. He also said the special committees must decide whether to develop a proposal and put it to shareholders for a vote. For now, their deliberations remain the next step.
Source: fool.com
