SpaceX offer will be hard for Tesla to refuse
SPCX•Elon Musk said SpaceX and Tesla are discussing a potential merger. SpaceX is valued at more than 1.4 times Tesla, while a merger would require approval from more than half of Tesla shareholders to exchange their voting rights for a stake in the combined company.
1. Merger discussions
Musk said the companies have formed special board committees to discuss a potential merger, calling a combination a “good idea.” The deal would bring together businesses spanning cars, robots, chatbots, batteries, satellites, social media, rockets and microchips.
2. Control and valuation
Musk has 85% of the say at SpaceX through super-voting stock, compared with 18% of Tesla through his common equity. SpaceX is now worth more than 1.4 times Tesla, though the companies were roughly equally valued in July. In a merger, Tesla would contribute 41% of the value, and more than half of Tesla shareholders would need to approve giving up their votes in exchange for a stake in the combined company.
3. Tesla’s valuation
Tesla shares trade at more than 200 times expected earnings for the year, while Wall Street’s expectations for its 2026 operating income have fallen 80% over the past two years. SpaceX reported 830% year-over-year growth in its server-rental unit on Tuesday, adding about $160 billion of market value.
