SpaceX says potential Tesla merger needs Elon Musk’s approval

SpaceX filing keeps merger unresolved

SpaceX said in a regulatory filing that no determination had been made by its special committee regarding a potential combination with Tesla. Any combination would require further approval from the special committee, SpaceX’s board of directors and controlling shareholder Elon Musk, the company said. The filing was reported on October 23, while the source article was dated October 24.

Musk has recused himself from negotiations between the two companies because of conflicts of interest, despite owning nearly one-fifth of Tesla and holding voting control at SpaceX.

Musk backed discussions but merger remains conditional

Musk said on Tuesday that merging SpaceX and Tesla would be “a good idea” and that special committees had been formed to discuss a combination. Reuters reported that his public endorsement of a potential deal had rattled some people involved in the talks, who feared it could prompt shareholder scrutiny and delay the process by several weeks.

The Reuters report described a potential merger valued at $3.5 trillion. It also said several Wall Street analysts viewed a combination as inevitable, although they disagreed over what Tesla shareholders should receive. Musk’s ownership and voting control could give him influence over a combined company, but the reviewed reporting did not provide financial terms or an agreed exchange ratio.

Separate Crown Castle report points to reported tower negotiations

RTTNews separately reported that Crown Castle shares rose 12% after reports of a potential SpaceX tower deal. The supplied report did not provide transaction terms, confirm an agreement, identify the assets involved or describe SpaceX’s role as a buyer, seller or other counterparty, so the cash direction and asset-transfer details could not be verified.

This was a distinct report from the potential Tesla combination and did not establish that either transaction had been completed or approved.