A SpaceX–Tesla merger could increase Musk’s voting control
Technology · First reported 3 Nov, 11:01 · Updated 11:31
A potential merger could give Elon Musk greater voting power in a combined company without immediately paying out the full value of his Tesla compensation plan. The outcome would depend on the deal terms and how SpaceX’s board handles his awards.
- Musk said both companies’ boards had formed special committees to discuss a possible merger.
- Barclays analysts estimated that if SpaceX acquired Tesla at current company sizes, Musk would have about 37% ownership and 56% of the voting power in the combined company.
- Compensation experts said a merger would not necessarily give Musk an immediate $1 trillion payout; they said SpaceX’s board could revise his compensation plan after a deal.
Summary written by Lux AI from 2 articles
Key facts
- Possible deal
- Musk said both companies’ boards had formed special committees to discuss a potential merger.
- Estimated combined-company voting power
- About 56% for Musk if SpaceX acquired Tesla at the companies’ current sizes, according to Barclays analysts.
- Tesla market capitalization threshold
- $2 trillion for Musk to receive any stock awards under the merger provision described.
- Tesla voting power after meeting all current plan targets
- About 29%, according to documents the Tesla board presented last year.
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