Tesla and SpaceX explore merger as Elon Musk gives backing
Source: The Guardian ·
Billionaire, on SpaceX earnings call, says ‘special committees’ exploring idea but no agreement reached yetAs SpaceX released its second-ever public earnings report Tuesday, Elon Musk declared his support for combining the aerospace and AI company with his electric vehicle company, Tesla. He said both companies had created special committees to explore a potential merger, but have not reached…
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As SpaceX released its second-ever public earnings report Tuesday, Elon Musk declared his support for combining the aerospace and AI company with his electric vehicle company, Tesla. He said both companies had created special committees to explore a potential merger, but have not reached any agreement on terms of a transaction. “Both SpaceX and Tesla have formed special committees to discuss this idea at the request of shareholders and these special committees are, uh, consist of independent directors,” Musk said on the call. “Because I’m a conflicted party, I can’t actually be in the discussions of the special committees.” Musk also expressed his backing for the move, while cautioning about the hurdles involved achieve it. He stated that it would require the approval of 50% of all Tesla shareholders. “I think some people out there assume that a SpaceX and Tesla merger is a certainty and I think that would be overstating it,” Musk said, adding it would require shareholder approvals…