Video explainer: Tesla and SpaceX boards study a merger

Elon Musk just said a Tesla and SpaceX merger would be a "good idea." And for the first time both boards are formally looking at it.

On @SpaceX's Q3 call @elonmusk said SpaceX and @Tesla each formed special committees of independent directors to study a deal. He's a conflicted party so he's not in the room and he says a merger is not a certainty.

Together they're worth ~$3.5T. That would be the biggest merger ever. SpaceX revenue jumped 161% to $14.6B and its AI business passed Starlink for the first time. JPMorgan sees an all-stock deal led by SpaceX with a 30-35% premium for Tesla.

The catch: Tesla needs 50% of ALL shares to vote yes, not just the ones that vote.

I think this is really an AI story because SpaceX's AI business is now its biggest segment and Tesla brings robots, self-driving and the Terafab chip plan. Tesla reports tonight.

Would you vote yes on a Tesla SpaceX merger?

The numbers behind it: SpaceX revenue up 161% to $14.6B, AI now bigger than Starlink, and a combined ~$3.5T. Does Tesla look like the AI play here or SpaceX?

Sources: Earliest X posts: @Teslarati 5:24pm ET , @SawyerMerritt 5:26pm ET , @KobeissiLetter 5:42pm ET · Earliest X posts: @Teslarati 5:24pm ET , @SawyerMerritt 5:26pm ET , @KobeissiLetter 5:42pm ET · Earliest X posts: @Teslarati 5:24pm ET , @SawyerMerritt 5:26pm ET , @KobeissiLetter 5:42pm ET · Both boards formed special committees of independent directors "at the request of shareholders"; Musk is a "conflicted p · Both boards formed special committees of independent directors "at the request of shareholders"; Musk is a "conflicted p · Both boards formed special committees of independent directors "at the request of shareholders"; Musk is a "conflicted p

Not financial advice. For informational and educational purposes only.