Elon Musk said Tesla and SpaceX have created committees to discuss a potential merger.
Bloomberg/Getty Images
SpaceX and Tesla have each established exploratory committees to discuss a possible merger, Elon Musk said.
Musk, who said he can’t participate in the talks, gave the update during Tesla’s Q3 earnings call.
Musk said he personally thinks a merger is a good idea, but cautioned investors that shareholders would need to approve it.
Houston, we have an update on all that SpaceX-Tesla merger chatter.
During SpaceX’s Tuesday earnings call, Elon Musk said both of the companies had created “special committees of independent directors” to discuss a potential merger.
Musk, who helms both companies and owns billions in stock of each, said he can’t be part of those groups.
“Do I think it would be a good idea? Yes,” he said on the call. “But at the end of the day, the shareholders have to be supportive of this, and particularly on the Tesla side, we will need a 50% vote of all shares, not just those who vote, but of all shareholders.”
He said clearing that bar would be “quite a high hurdle.”
This is a developing story…
Read the original article on Business Insider
