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UNISpaceX filing gives Elon Musk final say on any Tesla merger
A SpaceX SEC filing says any combination with Tesla needs approval from its controlling shareholder, Elon Musk, who holds about 85% of SpaceX's voting power despite recusing himself from talks.
Why it matters: The filing shows that Musk would hold decisive approval over a deal analysts estimate could create a combined company worth around $3.5tn, even after recusing himself from talks.
Key points
- SpaceX's 22 October 10-Q says a Tesla combination would need approval from its special committee, board and controlling shareholder.
- Musk controls roughly 85% of SpaceX's voting power; both firms formed special committees on 20 October.
A SpaceX SEC filing shows that any Tesla merger would still need the approval of Elon Musk, the company's controlling shareholder, Decrypt reports. The 22 October 10-Q states that a combination would require sign-off from SpaceX's special committee, its board and its controlling shareholder. Musk holds roughly 85% of SpaceX's voting power, so that last condition rests with him.
Musk, who recused himself from the talks, called his position "an odd kabuki dance" in which he cannot take part.
Tesla shareholders must clear a threshold of 50% of all outstanding shares rather than a simple majority of votes cast, a bar Musk himself described as "quite a high hurdle". REX Financial estimates the merged company would give Musk about 57% of combined voting power.
What to watch: Tesla shareholders are expected to vote on the deal at or near the company's 3 December annual meeting.
Live updates on NewsFeeds:RegulationDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)
How this was produced: an AI model wrote this summary of Decrypt’s report, which we credit and link above. Read our Editorial and AI policy. Spotted a mistake? See Corrections.
Not investment advice. Read the risk disclaimer.