SpaceX's 12% Slide Since Q3 Results Makes Tesla Merger Math Costlier
SPCX sits 33% above its 52-week low of $104.83.
Summary
SpaceX stock has fallen about 12% since its blowout Oct. 21 third-quarter report, while Tesla is flat over the same stretch. That divergence directly changes the exchange ratio in a potential all-stock merger: at a 15% premium, SpaceX would now have to hand Tesla holders roughly 3.2 shares each, leaving Tesla investors with more than 50% of the combined company on a fully diluted basis. When SpaceX traded at $200, the same 15% premium cost only about 2.3 shares and SpaceX holders kept roughly 57%. The math is the problem — the more shares SpaceX issues, the more its own holders get diluted, and the Marvell-Lumentum precedent shows all-stock acquirers can sell off on deal announcements. Musk said on the Oct. 20 call that both boards formed special committees, so a deal remains live, but SpaceX needs its stock to stabilize for the terms to stay palatable. Premarket Thursday: SpaceX up 0.1% at $139.88, Tesla down 0.5% at $388.70.
At the time of this announcement, SPCX was trading at $139.30 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.9T. The 52-week trading range was $104.83 to $225.64. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.