Elon Musk says that Tesla and SpaceX have each set up special committees to discuss a possible merger between the two companies he leads as CEO.
\n\nThe Wall Street Journal reports that Musk made the announcement on SpaceX’s quarterly earnings call, saying he is not part of either committee evaluating the combination. “The special committees have not reached an agreement of the terms of any transaction and there is no guarantee that they will but I do think there is a lot of merit in combining the companies,” he said.
\n\nAny deal would need a vote from shareholders of both companies. Tesla is valued at around $1.5 trillion and SpaceX at around $2 trillion. Musk holds substantial ownership stakes in both and has majority voting power at SpaceX.
\n\nMusk founded SpaceX in 2002 with proceeds from the sale of PayPal, which he co-founded. He joined Tesla’s board after investing in the company in 2004 and became its CEO in 2008. Folding SpaceX into Tesla would echo a pattern: Musk led the merger of his AI startup xAI into SpaceX earlier this year, and he was Tesla’s largest shareholder when it bought the struggling solar energy company SolarCity, which he was…
Original source: https://www.breitbart.com/tech/
