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Elon Musk’s Next Move May Be a Mega-Merger of SpaceX and Tesla
The New York Times • • business
Key Points:
- SpaceX recently held the largest initial public offering (IPO) ever, but investors anticipate Elon Musk may pursue an even bigger move by merging SpaceX with Tesla, his electric car company.
- A merger would create a massive $4 trillion tech conglomerate, combining Musk's major businesses into one entity often referred to as "Elon Inc."
- The two companies already share executives and collaborate on multibillion-dollar projects, fueling speculation about the benefits of a formal merger.
- Legal challenges could arise since Musk controls SpaceX and is Tesla’s largest shareholder, effectively making a deal with himself; however, Texas corporate law makes it difficult for investors to contest such decisions.
- Both Tesla and SpaceX relocated their corporate domiciles from Delaware to Texas, partly due to Musk's dissatisfaction with Delaware court rulings affecting his compensation and control.
