Musk's public endorsement of SpaceX-Tesla deal may throw a wrench in talks
NEW YORK — Elon Musk's public endorsement this week of a potential $3.5 trillion merger between SpaceX and Tesla has rattled some insiders involved in the discussions, who worry his comments could invite shareholder scrutiny and delay the process by several weeks, according to a person with direct knowledge of the talks. The disclosure created a "mess" for the process, as it could lead to…
Elon Musk recently publicly backed a potential $3.5 trillion merger between SpaceX and Tesla, causing alarm among insiders involved in the negotiations. According to a source with knowledge of the talks, Musk's comments could provoke shareholder scrutiny and delay the process by several weeks. This revelation has thrown a wrench into the proceedings, potentially raising questions about the representation of Tesla shareholders' interests.
The concerns echo those that arose during Tesla's 2016 acquisition of SolarCity, which resulted in years of legal battles over Musk's involvement. Musk, the CEO of both SpaceX and Tesla and a significant shareholder in both companies, recently informed investors that the two entities are exploring what would be the largest corporate transaction in history.
He also mentioned that both companies have established special committees to assess the deal. However, the backlash to his remarks has only now come to light. The involved parties have reportedly enlisted advisers, but negotiations are still in the preliminary stages, according to three sources familiar with the matter.
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