Elon Musk says there is “a lot of merit” in combining Tesla and SpaceX, but stresses that a merger is far from certain and is not his decision alone.
Speaking in Bastrop, Texas, on October 20, Musk said both companies have formed special committees made up of independent directors to consider the proposal. He said the committees have yet to agree on the terms of any transaction, with no guarantee that they will reach a deal.
Musk also highlighted the challenge of securing shareholder approval, saying the Tesla proposal would require votes representing 50% of all shares.
The comments come as investors weigh the possibility of bringing the electric vehicle maker and the space company closer together. In premarket trading, SpaceX shares were up 9%, while Tesla gained 1%.
Watch Musk’s full remarks on the potential Tesla-SpaceX merger, shareholder approval and the next steps in the process.
#ElonMusk #Tesla #SpaceX #TeslaSpaceXMerger #StockMarket #TechNews #ArtificialIntelligence #BusinessNews #CNBCTV18