But the merger would ultimately be decided by shareholders, with half of Tesla’s needed to back the deal, a threshold even Musk described as “quite a high hurdle”.
Musk, as boss of both companies, cannot participate in shareholder discussions.
Even so, Musk, a key shareholder of Tesla, will likely get his way in the next few years, said investment analyst Dan Sheehan from Telos Wealth Advisors.
He believes shareholders will back the deal as the technology the companies develop complement each other, Sheehan said.
But the merger would mean that Tesla shareholders will likely hold a “smaller slice of a much larger and more complex business,” he added.
“There’s no real precedent for how a public company like Tesla gets priced in this,” Sheehan said.
SpaceX shares rose 8% in after hours trading while shares of Tesla climbed by 2%.
Source: www.bbc.co.uk
