SpaceX says potential Tesla merger would need Elon Musk's approval
SPCX•SpaceX said any potential merger with Tesla would require approval from its special committee, board and controlling shareholder Elon Musk. No decision has been made on a combination, which Musk has publicly called “a good idea.”
1. Approvals still required
SpaceX said in a regulatory filing that no determination has been made on a potential combination with Tesla. Any deal would require approval from SpaceX's special committee, board of directors and controlling shareholder Elon Musk, who has recused himself from talks between the companies because of conflicts of interest.
2. Merger discussions and figures
Musk publicly endorsed a potential $3.5 trillion merger this week. A person with direct knowledge of the talks said the disclosure could raise questions about representation of Tesla shareholders. Tesla cut its annual capital expenditure forecast to roughly $20 billion from more than $25 billion, while SpaceX expects fourth-quarter capital expenditure of $35 billion to $40 billion.
3. Companies' differing ties
SpaceX is a major contractor for the US military, intelligence agencies and NASA. Tesla has a major vehicle production and sales operation at its Shanghai factory.
