Tesla (TSLA) and SpaceX have each set up a committee of independent directors to look at a possible merger, Elon Musk said on SpaceX's third-quarter earnings call on Oct. 20, according to Benzinga's report of the call. Investing.com and Yahoo Finance carried the same remarks from the call. We haven't seen a transcript or a company filing, and neither company has put out a statement we could check, so this rests on press accounts of what Musk said, not on a document we've verified ourselves. If you own either stock, or just follow Musk's empire, that is the first time the idea has come with a formal process attached. It follows our earlier preview, Tesla earnings tonight, Cybercab in Austin and SpaceX merger talk.
What Musk said about the committees
Musk said the committees were formed "at the request of shareholders" and consist of independent directors. He said he is recused as a conflicted party, since he runs both companies. "Because I'm a conflicted party, I can't actually be in the discussions of the special committees," he said, as Yahoo Finance quoted him. He called a combination "a good idea" with "a lot of merit," and named superintelligence software, chip design, the Terafab project, robotics, orbital data centers and connectivity as possible gains.
Then he cooled it. The committees haven't agreed on terms, and there is no guarantee they will, he said. Any deal would need shareholder approval, including a vote of 50% of all Tesla shares, which he called "quite a high hurdle".
Where the Roadster comes in
The talk got louder after Tesla showed its next-generation Roadster prototype at a SpaceX development site in McGregor, Texas. It used SpaceX-built cold-gas thrusters to hop over other Tesla cars, spin and land. Investor Kevin O'Leary then said on X that he sees "no question" the two will merge.
Treat that as opinion. Benzinga presents it as his own view, drawn from the overlap between rockets and cars. Musk's remarks on the call, as Benzinga, Investing.com and Yahoo Finance report them, are the only statement from someone who would actually be in the room, and they amount to "possible, not decided".
What we couldn't confirm
We left out Tesla's third-quarter financial results and any Optimus production plans, because the report we reviewed doesn't cover them. Neither company has disclosed who sits on the committees or when they were formed, and we haven't seen a transcript or filing.
Watch for a Tesla filing or shareholder letter that confirms the committees, and for any proposal they produce. If one lands, would you vote yes on folding Tesla into a rocket company?
Sources
- 1.Kevin O’Leary Says Tesla-SpaceX Merger Is Inevitable After Flying Roadster Demo, ‘If You Own Tesla, You · Benzinga
- 2.SpaceX and Tesla form special committees to evaluate potential merger, Musk says · Investing.com
- 3.Musk backs SpaceX-Tesla merger idea as both boards form special committees · Yahoo Finance
- 4.Musk Says Tesla and SpaceX Have Merger Committees, but a Deal Is Far From Certain · IBTimes UK
Reported by the WattsUpNext desk from the sources linked below. Spot an error? Tell us at corrections@wattsupnext.com.
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