Musk backs Tesla–SpaceX merger as independent committees discuss a possible deal

Tesla and SpaceX have moved from merger speculation to discussions by special committees of independent directors, Elon Musk said during SpaceX’s third-quarter earnings call. He endorsed combining the companies, but said the committees had not agreed on terms. A transaction remains uncertain and would ultimately need shareholder approval.

The committees were formed at shareholders’ request, Musk said on Tuesday. Asked about the potential combination, he answered: “Do I think it would be a good idea? Yes.” That support came with a restriction on his own role: Musk said he could not participate in the committees’ discussions because he was a conflicted party.

Musk’s case centers on shared technology

Musk pointed to cooperation in AI software, chip design, robotics, launch capabilities and connectivity as areas where the companies could benefit. His argument linked software development with the hardware and infrastructure supporting it, rather than presenting the merger solely as a combination of vehicle manufacturing and space operations.

Those were Musk’s stated reasons for closer cooperation, not agreed terms for bringing the businesses together. He placed responsibility for evaluating a transaction with the two committees. As Firstpost quoted him: “I think it would be a good idea, but it's really up to the special committees of both companies.”

Some people out there assume that a SpaceX and Tesla merger is a certainty, and I think that would be overstating it

Elon Musk, during SpaceX’s third-quarter earnings call

Tesla’s vote would count all shares

Even if the committees reach an agreement, Musk said shareholders would have to support it. He singled out the Tesla requirement: approval representing 50% of all Tesla shares, not simply 50% of the shares cast in a vote. He described that as a high hurdle.

That distinction makes turnout consequential. A majority among participating shares would not necessarily deliver the support Musk said was required across the full share base. Shares not voted in favor would not help reach that threshold, even if supporters outnumbered opponents among those who cast ballots.