Tesla and SpaceX form committees to assess possible merger

Tesla and SpaceX have formed special committees to evaluate a potential merger, but Elon Musk said no terms have been agreed and a deal is not assured. The committees were established at the companies’ request, and Musk said he would not take part in their discussions because he is a conflicted party. SpaceX’s October 22 filing says a combination would require approval from its special committee, its board and its controlling shareholder. The filing identifies Musk as controlling about 85% of SpaceX’s voting power, giving him an approval role even as he says he is staying out of the committees’ deliberations. Tesla shareholder approval would require votes representing 50% of all outstanding shares, including shares not voted, according to Musk. He described that threshold as a high hurdle. Tesla’s annual meeting is scheduled for December 3, and a shareholder vote on a potential merger is expected at or near the meeting. Musk has publicly said he believes a merger would be a good idea. A person with direct knowledge of the talks said his comments could prompt scrutiny from Tesla shareholders and delay the process by several weeks. That potential delay has not been confirmed by...