Both SpaceX and Tesla have formed an independent committee of directors who are anticipating a potential merger. There is no guarantee of this merger, but there are major gains to this future possibility. It will eventually be decided based on shareholders’ voting discretion. This threshold is not a basic “majority” but 50% of shareholder votes. Elon Musk remains the controlling shareholder, who thinks that this is a “good idea.” There is no determination or guarantee made towards this alignment.
What’s the motive behind this 3.5 to 5 trillion project? The merger is set to combine the largest rocket launcher and satellite operator company with the second-largest electric car manufacturer under one corporate setting. This will result in a reconsolidation of Musk’s technology domain into one of artificial intelligence, superintelligence, and space-based infrastructure.
Musk has announced himself as the “conflicted party” who is not part of the discussion with the committees. He has also described the 50% share of votes by the shareholders as “quite a high hurdle to achieve.” Musk’s Tesla-SpaceX dream will become the largest corporate deal in history. He holds around 82% of the voting power at SpaceX in super voting shares. Tesla has a broader public shareholder voting base, sitting at 20% of Musk’s voting power.
SpaceX shares rose 8%, and Tesla’s stock went up 2%. This merger could add a higher share of his voting power at Tesla, add to his wealth, and bring him closer to his ultimate goal: living on Mars.
