SpaceX and Tesla have formed independent committees to assess a possible merger, but no terms have been agreed and a deal is not assured.
Elon Musk disclosed the committees on October 20 during a SpaceX earnings call. He said they were created at shareholders’ request. The groups consist of independent directors.
Neither company has publicly named its committee members. Musk leads both firms and said he is excluded from their discussions because he has a conflict of interest. A SpaceX disclosure also says his approval would be required for a merger.
Musk endorsed the idea, citing possible cooperation in artificial intelligence, chip design, robotics and connectivity. He said shareholders would ultimately have to support a deal. Musk has said Tesla’s approval threshold would be difficult to meet.
Votes in favor would need to represent half of all shares, not just votes cast. A Reuters report published October 22 said Musk’s public backing had unsettled some people involved in the talks. Those people worry it could invite scrutiny and delay discussions.
As of October 23, the companies had not announced how a deal would be structured, its price or a timeline. The committees were still only exploring the possibility.