“They’ve got to come up with something, and then that’s got to be put to the shareholders as a vote,” Musk said. However, he acknowledged that securing shareholder approval could be a challenge. Tesla and SpaceX would require approval from Tesla shareholders, with at least 50% voting in favour of the deal, he said.
“There's a lot of merit to combining the companies,” Musk said. “I think it would be a good idea, but it's really up to the special committees of both companies.”
“Do I think it (merger) would be a good idea? Yes. But at the end of the day, the shareholders have to be supportive of this,” Musk said.
SpaceX-Tesla to be the biggest merger?
The SpaceX and Tesla merger is expected to be bigger than SpaceX and xAI, which is valued at $1.25 trillion, and could be the biggest in the history of corporate mergers. SpaceX is described as the world's seventh-largest company, while Tesla ranks eleventh, and based on their current valuations, the two companies together would be worth approximately $3.5 trillion.
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Furthermore, a merger between SpaceX and Tesla would combine several different businesses under one corporate umbrella, but artificial intelligence (AI) is expected to be a common link. The combined company would operate across several industries, including electric vehicles, energy storage batteries, rockets, and satellites.
The idea is to use space-based infrastructure to support computing and AI workloads. Tesla could use AI to improve autonomous driving and develop robots, while SpaceX's space and satellite capabilities could complement Musk's broader technology ambitions.