Tesla and SpaceX have established special committees to deliberate on a possible merger. Elon Musk stated that shareholders requested the formation of these specific groups.
Independent directors comprise the membership of both committees. Musk is excluded from both committees and remains uninvolved in any of the ongoing discussions.
"Because I’m a conflicted party, I can’t actually be in the discussions of the special committees," Musk said. He described the situation as an "odd kabuki dance where two groups of people are talking and I can’t be in the conversation."
The groups have not yet reached an agreement regarding the terms of any transaction. Musk noted, "At the end of the day, the shareholders have to be supportive of this."
A merger between the two companies would result in a mega-entity with a valuation exceeding $3.6 trillion. Barclays issued a client note suggesting a potential combination could be announced before the Tesla annual shareholder meeting on 3 December.
