SpaceX and Tesla form special committees to evaluate potential merger, Musk says
Summary
Tesla and SpaceX have established special committees to assess a potential business combination between the two companies, according to a recent statement by Elon Musk. The move initiates a formal review process to determine whether joining the aerospace manufacturer and the electric vehicle maker is feasible.
Our Take
This is a real step, but it is still early. Musk confirmed on SpaceX's Q3 call that independent directors at both companies have formed special committees to study a merger, and he called it "a good idea." But he also said a deal is not a certainty, no terms have been agreed, and Tesla would need approval from a majority of all outstanding shares, which is a high bar. Traders liked it anyway: SpaceX (SPCX) jumped about 8% after hours to near $159.70, and Tesla (TSLA) added about 1.8% to around $380. For TSLA, the first test is Tuesday's high near $377.59. Holding above it keeps the bounce alive, while a slip back under $373.71 (Tuesday's close) would show the headline is fading. Expect merger headlines to move both stocks for weeks, so watch for committee or advisor news before chasing.
Opinion of Tech & Money Press. Not financial advice.
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