Elon Musk, the world’s richest man, is exploring a mega-merger of his twin rocket and electric vehicle companies that would set up a corporate behemoth in a tech industry already littered with towering giants.
It could serve as a path for Musk to assert serious control over his corporate interests without achieving long-shot goals like getting one million robotaxis on the road, releasing an army of humanoid robots or establishing a sprawling human colony on Mars.
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So far, Musk has said the SpaceX (NASDAQ:SPCX) and Tesla (NASDAQ:TSLA) boards have set up a pair of committees with independent directors to evaluate the benefits and drawbacks of a merger.
“I think it would be a good idea, but it’s really up to the special committees of both companies,” Musk said in an Oct. 21 earnings call. He acknowledged that a SpaceX and Tesla merger is not a done deal by any stretch, given the large level of shareholder support needed to turn it into reality. As a “conflicted party,” Musk said he is not able to weigh in on the committees’ deliberations.
“Particularly on the Tesla side, we will need a 50% vote of all shares, not just those who vote, but of all shareholders,” he said at the time. “And that’s quite a high hurdle to try to achieve.”
Musk’s future compensation
Reuters reported that Musk’s stock compensation following the merger would most likely award him just a small amount of the stock that was part of last year’s massive Tesla pay package, at least at the start.
Last year, Tesla shareholders voted to approve a 12-step, $1 trillion compensation package paid out in stock once Musk succeeds in jacking up the company’s valuation to $8.5 trillion from $1.4 trillion among other high-reach goals. Part of the deal also rested on Musk also being effective in shifting Tesla’s operational focus to AI and humanoid robotics.
He currently has 20% voting power over Tesla, according to a June filing with the Securities and Exchange Commission. Musk previously stated an interest to control a quarter of Tesla to achieve his long-term vision without the threat of being removed.
“My fundamental concern with regard to how much voting control I have in Tesla is: If I go ahead and build this enormous robot army, can I just be ousted at some point in the future?” he said on an Oct. 2025 Tesla earnings call.
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