SpaceX and Tesla are considering a potential merger, with independent director committees reviewing the proposal as SpaceX shares gain following strong earnings ahead of Tesla’s upcoming results.
Elon Musk, who leads both companies and is a major shareholder in each, disclosed on Tuesday that discussions are underway to explore a possible combination. The merger could unite two of his largest businesses and bring their Bitcoin reserves together, creating a combined holding of more than 30,000 BTC.
A June filing indicates that Musk owns approximately 36% of SpaceX directly. Including restricted shares and unexercised options, his stake rises to 48.4%. His reported beneficial ownership in Tesla, the electric vehicle company, is 19.8%, including restricted compensation shares.
During SpaceX’s third-quarter earnings call, Musk revealed that both businesses had appointed special committees of independent directors to examine the potential transaction. If the merger proceeds, SpaceX’s reported 18,712 BTC and Tesla’s 11,509 BTC would be combined, bringing their total holdings to 30,221 BTC.
Musk said he views the proposed merger favorably but acknowledged that shareholder support would be essential for the deal to move forward.
“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.
Because Musk has ownership interests in both companies, he is unable to participate in the committees’ discussions concerning the proposed merger.
Describing the process as unusual, Musk explained that the two independent groups are conducting negotiations without his direct involvement. He added that neither committee had reached an agreement on the terms of a potential transaction.
