Tesla is scheduled to report third-quarter results Oct. 21 as independent directors at the automaker and SpaceX review a possible merger without agreed terms for a transaction.
Tesla and SpaceX CEO Elon Musk said during SpaceX’s Oct. 20 earnings webcast that shareholders had asked the companies to consider combining. Each company formed a committee of independent directors, he said. Citing a conflict of interest, Musk said he could not participate in their discussions.
SpaceX said third-quarter revenue rose 161% year on year to $14.575 billion. Net income was $4.404 billion, according to results filed with the SEC. Tesla’s scheduled report will provide the next quarterly results from a company involved in the review.
Musk called a merger a “good idea,” citing opportunities for the companies to work together on software, chips, robotics and connectivity. He also cautioned that a deal was not assured. The committees have yet to settle transaction terms, he said.
A proposal would face a substantial voting requirement at Tesla. Musk said the potential merger vote would need support from holders of 50% of all Tesla shares, rather than a majority of votes cast. Tesla’s Oct. 19 proxy contains no merger proposal for its Dec. 3 shareholder meeting.
Tesla is scheduled to release its third-quarter results Oct. 21.
