SpaceX and Tesla form special committees to study a possible merger
Elon Musk told investors on a call after SpaceX's quarterly earnings Tuesday that SpaceX and Tesla have each formed special committees of independent directors, at shareholders' request, to discuss a possible merger. Musk called a merger "a good idea" but said he is a conflicted party and cannot take part in the committees' discussions. No terms have been agreed, and shareholders would have to approve any deal. SpaceX shares rose in extended trading.
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Why it matters
Musk is CEO and the largest individual shareholder of both companies. At Tesla, a merger would need approval from a majority of all shareholders, not just those who vote.
What to watch
Tesla is scheduled to report its quarterly earnings on Wednesday, Oct. 21.
Sources
- TechCrunch: SpaceX and Tesla boards form special committees to review merger
- Fox Business: Musk says Tesla-SpaceX merger would be 'a good idea'
- TipRanks: Stock market today, Oct. 21
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