SpaceX-Tesla Merger Would Hand Musk Tesla Voting Control Without Hitting Pay Milestones
SPCX sits 31% above its 52-week low of $104.83.
Summary
Reuters details how a SpaceX-Tesla merger would give Musk voting control at Tesla without him hitting any of the milestones in his pay plans. SpaceX's plan grants him voting power upfront before the stock is earned, which got him to 85% control of SpaceX without meeting goals; Tesla's plan is the opposite, requiring market-cap and operational targets. Barclays estimates that if SpaceX acquired Tesla at current sizes, Musk would own about 37% of the combined company but hold 56% of the voting power, thanks to SpaceX's 10-vote share class. Tesla's market cap would need to reach $2 trillion in connection with a merger for Musk to receive any stock awards under that plan, and compensation experts say the SpaceX board could rewrite his package after a deal. This follows the October 20 disclosure that both boards formed special committees to explore a combination — the structure now looks designed around control rather than the headline pay numbers.
At the time of this announcement, SPCX was trading at $137.70 on NASDAQ in the Industrial Applications And Services 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 neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.