Elon Musk has expressed support for merging Tesla and SpaceX, saying the idea has merit and is under active consideration by special committees.
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01Summary
- 01Musk said a merger between Tesla and SpaceX would be a 'good idea' during a call with financial analysts on Tuesday.
- 02Special committees at both companies have been formed to consider the merger, but have not yet reached an agreement.
- 03Tesla is valued at roughly $1.5 trillion and SpaceX at $2 trillion, making a potential combination one of the largest mergers in history.
- 04Musk recused himself from the special committees as a 'conflicted party', being CEO of both companies.
- 05At least 50% of Tesla's shareholders would need to approve the merger, which Musk called a 'high hurdle'.
02Why it matters
A merger of Tesla and SpaceX would create a combined entity worth over $3 trillion, potentially reshaping the electric vehicle and space industries and affecting shareholders of both companies.
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