Tesla-SpaceX merger faces valuation, voting, and shareholder hurdles

Tesla and SpaceX are exploring a potential $3.5 trillion merger, with key hurdles including valuation, voting rights, and shareholder approval. Both companies have formed independent director committees to examine a combination, though no terms have been agreed. Elon Musk, who controls both companies, has called himself a "conflicted party" and is staying out of committee discussions. An all-stock deal could give Tesla shareholders roughly 43% of the combined company without a premium, though analysts expect they may seek a 20% to 35% premium, potentially raising their stake to 47% to 50%. Musk holds about 20% voting power at Tesla and 85% at SpaceX, potentially giving him 57% to 58% control of a merged entity. The deal requires a majority of all Tesla shares, not just votes cast, and faces regulatory scrutiny, drawing comparisons to Tesla's 2016 SolarCity acquisition.