Musk backs Tesla and SpaceX committees as they explore possible merger, but shareholder approval is needed

Committees assess possible tie-up

Musk said committees at Tesla and SpaceX are exploring whether the companies should merge. He said he could not join those groups because he leads both businesses and owns stock in each.

Musk described a merger as a good idea, while emphasizing that shareholders must support it. He said Tesla would need approval from holders of at least 50% of all shares, not merely half of the shares voted.

Partnership spans several projects

The companies have worked together on artificial intelligence software, chip design, TeraFab manufacturing efforts, robotics and Starlink satellite connectivity. Their collaboration also includes SpaceX’s ability to send payloads into orbit, Musk and SpaceX President Gwynne Shotwell said.

The potential tie-up has drawn attention since SpaceX went public earlier this year. A merger would bring more of Musk’s businesses together, a group often called Musk Inc.

Roadster showcases collaboration

Tesla demonstrated its long-awaited Roadster on Thursday. A version of the car includes SpaceX technology, and the top trim is set to feature cold-gas thrusters. During the demonstration, the car launched, hovered and flipped in the air. Musk warned that the companies’ merger should not be treated as a sure thing, saying that would overstate the situation.