Tesla and SpaceX form committees to explore potential merger
publishers 122articles 190first reported 19 Oct, 12:15 UTCdeveloping since 19 Oct · 13 editions
Tesla and SpaceX have formed special board committees to evaluate a possible merger that could create a company valued at roughly $3.5 trillion, according to reports and comments by Elon Musk. Musk, chief executive of both companies, endorsed the idea during SpaceX’s earnings call, saying it had “a lot of merit.”
The discussions remain at an early stage, the Taipei Times reported, citing people familiar with the matter. Advisers have been hired, and possible structures include SpaceX acquiring Tesla or combining the businesses beneath a newly created holding company. An all-stock transaction is among the forms of consideration under review.
Musk said his stakes in both companies make him a conflicted party and prevent him from serving on either special committee. He controls about 85% of SpaceX’s voting power but roughly 20% of Tesla, Fortune reported. On Tesla’s side, approval would require support from holders of a majority of all outstanding shares, meaning shares not voted would effectively count against the proposal.
Musk’s public support has concerned some people involved in the discussions, who fear it could increase shareholder scrutiny and delay the process, according to the Taipei Times. Tesla’s 2016 acquisition of SolarCity generated years of litigation over Musk’s role, although courts ultimately upheld that deal as fair.
Tesla and SpaceX already share some technology and commercial ties, including Starlink service at some Tesla Supercharger stations.
HOW THIS STORY WAS MADE
Written from 8 articles, 3 with the publisher's own text; 8 independent newsrooms once syndicated copies count as one; this version written 149 h after the record first saw the story; the editor revised it.
- Publishers
- 122
- Source articles
- 190
- Given to the writer
- 8, 3 with the article's own text
- Independent newsrooms
- 8
- This version written
- 149 h after the record first saw the story
- Second model (editor)
- revised
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
The second model checked the writer's draft against the same sources and changed it before publication. Struck words were in the draft; underlined words are its corrections.
WHAT IT FLAGGED editor revise: Delete the unsupported statement about the absence of announced terms or a valuation premium. - "No transaction terms or valuation premium have been announced.": The sources discuss valuation and a possible premium but do not report that no transaction terms or valuation premium have been announced.
THE DRAFT AND THE CHANGES
Tesla and SpaceX form committees to explore potential merger
Tesla and SpaceX have formed special board committees to evaluate a possible merger that could create a company valued at roughly $3.5 trillion, according to reports and comments by Elon Musk. Musk, chief executive of both companies, endorsed the idea during SpaceX’s earnings call, saying it had “a lot of merit.”
The discussions remain at an early stage, the Taipei Times reported, citing people familiar with the matter. Advisers have been hired, and possible structures include SpaceX acquiring Tesla or combining the businesses beneath a newly created holding company. An all-stock transaction is among the forms of consideration under review.
Musk said his stakes in both companies make him a conflicted party and prevent him from serving on either special committee. He controls about 85% of SpaceX’s voting power but roughly 20% of Tesla, Fortune reported. On Tesla’s side, approval would require support from holders of a majority of all outstanding shares, meaning shares not voted would effectively count against the proposal.
Musk’s public support has concerned some people involved in the discussions, who fear it could increase shareholder scrutiny and delay the process, according to the Taipei Times. Tesla’s 2016 acquisition of SolarCity generated years of litigation over Musk’s role, although courts ultimately upheld that deal as fair.
No transaction terms or valuation premium have been announced. Tesla and SpaceX already share some technology and commercial ties, including Starlink service at some Tesla Supercharger stations.
Written by a language model from the sources above, then checked by a second model that may only cut, attribute or correct. How it works →