Elon Musk says SpaceX and Tesla formed committees to discuss merger
Elon Musk said on SpaceX's earnings call that both boards formed special committees of independent directors to discuss a merger. He said he cannot take part as a conflicted party, called a deal a good idea with a lot to be gained in AI, chips, robotics and software, and said treating a merger as certain would be overstating it. At least 50% of Tesla shareholders would have to approve. SpaceX is valued at more than $2 trillion and Tesla at nearly $1.5 trillion. SpaceX shares rose 8% after hours and Tesla shares rose 2%. Tesla reports results Wednesday. CONTESTED: Musk said a SpaceX-Tesla merger is not a certainty. Gene Munster said there is a 95% chance within two years and shareholders would support this. The committees have not agreed on terms and there is no guarantee they will. SpaceX reported $7.5bn cloud compute and $5.2bn Starlink revenue while losing $1.1bn so far this year. Musk called the process an odd Kabuki dance and answering questions dancing through a minefield.