The boards of Tesla and SpaceX have set up independent special committees to examine the possibility of combining the two corporations. Elon Musk announced the move during SpaceX's third-quarter financial report, according to infohub.kz.
According to the entrepreneur, the committees were created in response to shareholder requests. Musk stressed that he is an interested party and therefore is not taking part in the discussions and did not attend the meetings.
The businessman called the potential deal a good idea but urged investors not to treat it as a done deal. Any agreement would require approval from holders of more than 50% of all outstanding Tesla shares, a significant legal hurdle. Musk described the process as a procedural "kabuki dance" in which two teams of specialists discuss terms without his direct involvement.
Despite the absence of a formal agreement, Tesla and SpaceX already work closely together. In March, Tesla acquired SpaceX assets worth about $2 billion, and the two companies are jointly building the Terafab chip plant in Texas. Analysts note that a merger would create a combined entity worth more than $3.5 trillion, though the special committees' work so far is purely preliminary and exploratory.