SpaceX and Tesla Form Special Committee to Explore Potential Merger

BlockBeats news, October 21: SpaceX (SPCX.O) and Tesla (TSLA.O) have established special committees to explore a potential merger transaction.

Musk revealed on SpaceX's earnings call that the two companies have each formed committees composed of independent directors to explore the possibility of a potential transaction. Musk stated: "Since I am the party with a conflict of interest, I actually cannot participate in the relevant discussions." However, he also added: "I think it would be a good idea."

Musk pointed out that strengthening cooperation between the two sides in technology areas such as artificial intelligence, chips, robotics, and communication connectivity would have significant potential benefits. But he also emphasized that a merger transaction is not a done deal. Musk stated: "To say this is already certain would be somewhat exaggerated." He also noted that the transaction would require approval from 50% of Tesla's shareholders, calling it a fairly high threshold.