Elon Musk's own public praise for $3.5 trillion SpaceX-Tesla merger creates a 'mess' that could delay the deal, insiders fear
Elon Musk, who admits he is a 'conflicted party' unable to sit in on merger talks now being run by special committees at both SpaceX and Tesla.SpaceX's Starship rocket lifting off from Boca Chica, Texas. Elon Musk's company posted a $4.4bn quarterly profit, reversing a loss of about $1bn a year earlier, as talks over a merger with Tesla continue.
People close to the discussions are concerned that Elon Musk's public comments will invite shareholder scrutiny and cast doubt on whether Tesla investors are being adequately protected. The worries call to mind Tesla's 2016 SolarCity acquisition, which triggered years of legal battles over Musk's sway over the company. Advisers have been brought on board, though negotiations remain at an early stage. Musk said that describing the merger as a done deal would be 'overstating' things.
Musk owns 19 per cent of Tesla and 11 per cent of SpaceX.
Tesla's links to China could face national-security scrutiny because of SpaceX's military satellite work.
Musk on the earnings call: 'I feel like I'm tap-dancing through a minefield.'
