Tesla and SpaceX Boards Form Committees to Discuss Merger

Elon Musk announced that the boards of Tesla and Space Exploration Technologies Corp. have established special committees to evaluate a potential merger of the two companies. The move would allow Musk to secure greater voting control of Tesla without meeting the operational milestones required by his current compensation plans, such as deploying a million robotaxis or establishing a colony on Mars.

Barclays analysts estimate that a SpaceX acquisition of Tesla would grant Musk approximately 56% of the voting power through SpaceX's high-voting shares, even though he would own only 37% of the combined entity. Under existing Tesla pay structures, such a merger would trigger a change in control event, potentially enabling Musk to receive stock payouts based on market-capitalization goals while bypassing specific operational targets.

Musk expressed concern regarding his long-term influence, questioning if he could be ousted in the future if he builds an enormous robot army without sufficient voting control. Experts indicate the SpaceX board could further restructure his compensation following the transaction.