Elon Musk's public backing of $3.5 trillion SpaceX-Tesla merger has created 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.
Insiders fear the Tesla boss's remarks will invite shareholder scrutiny and push the talks back by several weeks. The worry echoes Tesla's 2016 purchase of SolarCity, which triggered years of litigation over Elon Musk's influence. Musk has admitted he is a 'conflicted party' who cannot join the special committees weighing the deal. Advisers have been hired, but the talks remain at an early stage.
SpaceX approached Tesla, and an all-stock takeover is among the options on the table.
China looms as a hurdle because SpaceX's defence contracts clash with Tesla's Chinese factories.
Musk told analysts handling the merger questions felt like 'tap-dancing through a minefield'.
