According to Woofun AI, both SpaceX (SPCX.US) and Tesla Motors (TSLA.US) have established special committees to study the possibility of a merger. Musk confirmed this development on Tuesday, characterizing it as a "good idea," but explicitly warning the market that it should not be viewed as an inevitable outcome.
During SpaceX's (SPCX.US) third-quarter earnings call held on Tuesday, Musk faced intense questioning from investors about the merger prospects and described himself as "feeling like tap dancing in a minefield," requiring extreme caution. He disclosed that, at shareholders' request, both companies had formed committees composed of independent directors to evaluate the proposal.
As a core stakeholder, Musk stated he was excluded from the discussions and unable to participate in the decision-making process. He likened this state to "a strange cabaret show," with two groups conversing while he could not join in. In response to the circulating narrative that the merger was "inevitable," Musk directly refuted it as "an exaggeration," noting that although he personally recognizes the value of a merger, the procedural complexity makes the outcome highly uncertain.
Woofun AI's compiled data shows that the transaction faces an extremely high voting threshold: it must secure support from 50% of all Tesla Motors (TSLA.US) shares outstanding, rather than simply counting votes actually cast. Musk admitted this standard is "extremely high and very difficult to meet."
Currently, the special committee "has not reached agreement on any transaction terms" and cannot guarantee that a deal will be reached in the future. Musk pointed out that if the merger materializes, fields such as superintelligence software, chip design, the Terafab project, robotics, and Starlink network connectivity would benefit significantly. This statement contrasts with his previous stance: during Tesla's (TSLA.US) second-quarter earnings call in July, when responding to a question from a Wells Fargo (WFC.US) analyst, Musk had responded that merger matters were not appropriate for discussion during an earnings call and needed to be handled through a formal process.
In fact, the two companies have had business and financial ties for many years and even share some employees and board members, which provides a potential foundation for a merger. However, the advancement of the formal process still depends on the committee's proposal and a shareholder vote.
In terms of performance, SpaceX's (SPCX.US) third-quarter revenue reached $14.58 billion, surpassing analysts' expectations of $12.74 billion; earnings per share came in at 35 cents, above the 12-cent estimate. Revenue from its superintelligence business segment grew 830% year over year to $7.6 billion.
Driven by these strong figures, in after-hours trading, SpaceX's (SPCX.US) stock rose 2.35% to close at $151.26. While the market digests the merger rumors, it is paying closer attention to the substantive growth of its fundamentals, indicating that even with an unclear merger outlook, the expansion capability of the core business remains a key variable supporting valuation.
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