Add as a preferred source on GoogleMusk’s Public Support May Delay Tesla-SpaceX Merger Talks by Weeks
The companies have formed special committees, and Musk says he will not take part in discussions. Potential structures include a SpaceX acquisition of Tesla or a new holding company.
Elon Musk’s public support for a potential Tesla-SpaceX combination may delay negotiations by several weeks as conflict-of-interest concerns draw greater attention from Tesla shareholders and prolong legal review.
Some participants in the discussions are concerned that Musk’s endorsement could sharpen shareholder scrutiny of conflicts tied to his leadership and ownership in both companies. The deal remains at an early stage.
On Tuesday, Musk said Tesla and SpaceX had formed special committees to assess the combination. He also said he would stay out of the discussions because of his conflict of interest.
Options under consideration include SpaceX buying Tesla or the companies combining under a newly created holding company. The transaction’s potential scale has been put at as much as $3.5 trillion.
Musk owns nearly one-fifth of Tesla and just under half of SpaceX, stakes that put his interests in both companies at the center of the review.
John Kim
John Kim reports on the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.