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Tesla and SpaceX merger talks face governance conflicts after Elon Musk recused himself from discussions, while SpaceX says his approval remains final. Source: Benzinga.
The article
Elon Musk Recused Himself From SpaceX-Tesla Merger Talks Over Conflicts of Interest — But Rocket Giant Says His Word Will Be Final A potential merger of Space Exploration Technologies Corp (NASDAQ:SPCX) and Tesla Inc. (NASDAQ:TSLA) will require approval from controlling investor Elon Musk, even though he has recused himself from talks over conflicts of interest. SpaceX Filing Outlines Potential Merger Path In a regulatory Securities and Exchange Commission filing on Thursday, SpaceX said, "No determination by our special committee has been made regarding any potential combination." Any deal would need approval from the committee, the board, and its controlling shareholder. The filing follows Musk’s Tuesday comment that a merger would be "a good idea." He confirmed both companies had formed special committees to discuss a union. However, Musk said he cannot take part in the committee discussions. Governance Concerns Could Delay the Deal Musk’s endorsement of the potential $3.5 trillion deal has rattled some insiders, Reuters reported on Thursday. They worry his comments could invite shareholder scrutiny and delay the process by several weeks. Read Also: Western Digital (WDC) Stock Is Trending After Hours: Here’s What You Need to Know Tesla on Wednesday cut its full-year capital expenditure forecast to roughly $20 billion from more than $25 billion. SpaceX spent $19.6 billion on capex in the third quarter. CFO Bret Johnsen expects fourth-quarter spending of $35 billion to $40 billion, nearly double the prior quarter’s level. Trading Metrics NameMarket CapitalizationAnnual RangeYTD DownOutstanding Shares Tesla$1.48 Trillion$297.38–$498.8216.71%3.95 Billion SpaceX $1.96 Trillion$104.83–$225.643.5%8.09 Billion In the pre-market session on Friday, SPCX gained 1.44% to $146.84, while TSLA edged 0.11% higher to $375, according to Benzinga Pro data. .benzinga-widget#bz-embed-widget-block_c3ba7c4f3e0c771e5f2e665b0290a837 iframe.w-full { width: 100%; } @media (max-width: 600px) { .benzinga-widget#bz-embed-widget-block_c3ba7c4f3e0c771e5f2e665b0290a837 iframe.w-full { height: 520px; } } See More: Top Value Stocks Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock