SpaceX-Tesla merger would need Elon Musk’s approval

SpaceX and Tesla are on track to merge, with Elon Musk advocating for the deal. The combined entity would be worth around US$3.5 trillion, making it the largest corporate acquisition in history. SpaceX, founded in 2002, is valued at approximately US$2 trillion, while Tesla, established in 2003, is valued at about US$1.5 trillion.

SpaceX's core activities include developing reusable rockets and providing internet services via the Starlink satellite network. Tesla, on the other hand, is known for its electric cars and self-driving robotaxis. The merger could potentially centralize crucial elements of artificial intelligence, such as chips, energy, and connectivity.

Musk holds a substantial portion of voting power in SpaceX but a smaller percentage in Tesla, which has raised concerns about his influence. Analysts believe that the merger is highly likely to happen, with Dan Ives of Yorkville Ives estimating a 90% chance by early 2027. However, a significant hurdle for the merger is obtaining approval from a majority of Tesla shareholders, a task that may prove challenging given the large number of retail investors.

Legal obstacles are relatively minor, as both companies shifted their incorporation from Delaware to Texas, where shareholder challenges require fraudulent or intentional misconduct evidence. Despite these challenges, experts suggest that Musk should be able to push the merger through from a corporate standpoint, given SpaceX's importance to the US government and Tesla's operations in China.