Follow-Up: Musk's Public Endorsement of the SpaceX-Tesla Merger Rattles Deal Insiders, May Slow Talks by Weeks
Elon Musk's public endorsement this week of a merger between SpaceX and Tesla has rattled some of the insiders involved in the discussions, Reuters reported on October 22. A person with direct knowledge of the talks said the disclosure had created a "mess" for the process, could invite shareholder scrutiny, and could delay the process by several weeks.
Some participants see parallels with Tesla's 2016 acquisition of SolarCity, which sparked years of litigation over Musk's role in that deal. In related-party transactions, independent board members typically oversee the process to safeguard public shareholders' interests, and how well Tesla shareholders' interests would be represented has become a concern among those involved.
The parties have hired advisers and the discussions are at an early stage, according to three people familiar with the matter. SpaceX approached Tesla in recent weeks, and the structures under discussion include a SpaceX acquisition of Tesla or a merger under a newly formed holding company; the forms of consideration being weighed include an all-stock deal. If completed, the combined company would be worth about $3.5 trillion, making it the largest corporate transaction in history.
Musk is chief executive of both companies and holds significant stakes in each. As GSM reported on October 20, Musk said both companies had formed special committees to evaluate a merger and called it a good idea; he also said the committees had yet to agree on terms, that a merger was not certain, and that a Tesla shareholder vote would be a high hurdle. Tesla, SpaceX and Musk did not respond to requests for comment.
Source: GSM · USA (original Chinese edition)
Photo: 马斯克（左）与特朗普2025年3月11日在白宫南草坪的特斯拉展示活动上（资料图）。照片：白宫官方照片，Molly Riley 摄，公共领域。 / Elon Musk (left) with President Donald Trump at a Tesla showcase on the White House South Lawn on March 11, 2025 (file photo). Official White House photo by Molly Riley, public domain.
- 2026-10-20Musk Calls a SpaceX-Tesla Merger 'a Good Idea' as Both Boards Form Special Committees to Review It
- 2026-10-22Follow-Up: Musk's Public Endorsement of the SpaceX-Tesla Merger Rattles Deal Insiders, May Slow Talks by WeeksThis story
