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Musk Reportedly Raised Idea of Merging SpaceX and Tesla

Reported discussions have heightened concerns that Musk’s near-total voting control at SpaceX could steer any deal and pose valuation and governance risks for Tesla shareholders.

Overview

  • Multiple reports say Elon Musk has discussed internally the possibility of combining his rocket and electric‑car companies, though no merger has been announced.
  • SpaceX’s IPO prospectus shows special Class B shares that would leave Musk with roughly 85% of voting power at SpaceX, giving him decisive influence over any transaction terms.
  • Analysts warn a likely stock‑for‑stock deal would expose Tesla to a conglomerate discount, with Gary Black saying the merged entity could trade at the lower legacy multiple and reduce Tesla’s standalone value.
  • Corporate finance experts note Tesla shareholders would get a formal vote on any merger but that Musk’s control at SpaceX could strongly shape negotiations and outcomes.
  • The two firms already share projects — including a chip plant and orbital data work and xAI was folded into SpaceX — and observers say SpaceX’s small planned public float and rapid index entry could concentrate market flows if a deal moves forward.