SpaceX and Tesla are evaluating a possible merger through committees of independent directors, as strong earnings from SpaceX drive its shares higher ahead of Tesla’s financial results.
Elon Musk, who serves as CEO and holds ownership stakes in both companies, confirmed on Tuesday that the two businesses are exploring a potential merger. The proposed deal could combine his major ventures while bringing their Bitcoin reserves together, totaling more than 30,000 BTC.
A June filing shows that Musk directly owns around 36% of SpaceX, which focuses on space exploration and artificial intelligence. His stake increases to 48.4% when restricted shares and unexercised stock options are included. His reported beneficial ownership in Tesla, the electric vehicle manufacturer, stands at 19.8%, including restricted compensation shares.
Speaking during SpaceX’s third-quarter earnings call, Musk said both companies had established special committees comprising independent directors to examine the proposed combination. A successful merger would bring together SpaceX’s reported 18,712 BTC and Tesla’s 11,509 BTC, resulting in combined holdings of 30,221 BTC.
Musk indicated that he supports the potential deal but emphasized that shareholders must ultimately approve the transaction.
“Do I think it would be a good idea, yes. But at the end of the day, the shareholders have to be supportive of this,” he said.
Musk’s ownership interests in both businesses mean he cannot take part in the independent committees’ discussions about the merger.
He described the arrangement as an unusual process in which two separate groups negotiate while he remains outside the conversations. Musk added that the committees had yet to reach an agreement on the terms of any potential transaction.
