Musk's SpaceX-Tesla Deal Endorsement Rattles Insiders and Delays Talks

firstpost.com —

Elon Musk's public endorsement this week of a potential $3.5 trillion SpaceX-Tesla merger has rattled insiders, who fear his comments could invite shareholder scrutiny and delay the process by several weeks. The disclosure created a "mess" for the talks, raising questions about how Tesla shareholders' interests would be represented, according to a person with direct knowledge. Concerns echo Tesla's 2016 SolarCity acquisition, which sparked years of litigation over Musk's role. Musk, CEO of both companies, acknowledged he cannot participate in special committee discussions. SpaceX approached Tesla recently, with structures including an acquisition or merger under a new holding company being weighed. Musk owns nearly a fifth of Tesla and just under half of SpaceX. Legal experts note Texas incorporation adds uncertainty, though litigation risk ultimately hinges on deal terms.


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Musk's SpaceX-Tesla Deal Endorsement Rattles Insiders and Delays Talks | News Minimalist