SpaceX responds to merger with Tesla: No decision has been made yet, Musk’s approval is needed

Abstract:

According to Reuters, SpaceX said on Thursday that its potential merger with Tesla would require approval from controlling shareholder Musk, although Elon Musk recused himself from merger talks between SpaceX and Tesla due to conflicts of interest.

Musk will integrate rocket and automotive businesses

Musk publicly stated on Tuesday that a merger between SpaceX and Tesla would be "a good idea" and said the two companies had established a special committee to discuss the merger.

SpaceX said in a regulatory filing on Thursday: "Our special committee has not made a decision on any potential merger transaction, and any potential merger transaction is subject to further approval by our special committee, board of directors and controlling shareholders."

Musk holds nearly a fifth of Tesla shares and has voting control of SpaceX. Analysts said the merger would give him control of the combined entity and could further solidify his influence.

Many Wall Street analysts have said they believe a Tesla-SpaceX merger is a matter of when, not if, but they differ on how much consideration Tesla shareholders should receive in the deal.

However, Musk's public support for the potential $3.5 trillion merger this week has also unsettled some insiders involved in the negotiations. They worry that Musk's comments could trigger shareholder scrutiny and delay the entire negotiation process for weeks.