Tesla, SpaceX boards form special committees to weigh merger, Musk says

The boards of Tesla and SpaceX have each formed special committees of independent directors to review a possible merger of the two companies, Elon Musk said on SpaceX's third-quarter earnings call. Musk, the largest individual shareholder and CEO of both firms, said he is excluded from the committee discussions because he is a conflicted party, calling the arrangement "an odd kabuki dance." He did not name the members. Tesla's seven independent directors include board chair Robyn Denholm, Ira Ehrenpreis, JB Straubel, Joe Gebbia, Jack Hartung, James Murdoch and Kathleen Wilson-Thompson, per its October 19 proxy filing. SpaceX lists six independent directors, including Ehrenpreis. Musk said he supports a combination—citing cooperation on AI software, robotics, Starbucks orbital data center project Starmind and the Terafab chip venture—but cautioned a deal is not certain. "The shareholders have to be supportive." The committees have not agreed on transaction terms. SpaceX would require a simple vote; Tesla needs approval from 50% of all shareholders, not just those voting, Musk noted.