Tesla-SpaceX merger talks overshadow earnings as both stocks slide
What's new: Musk said both companies formed special committees, but Tesla would need support from half of its shareholders.
A possible merger between Tesla and SpaceX took center stage after Tesla’s latest earnings, eclipsing weaker operating results and stirring debate on Wall Street over how a combined company would be valued and governed. Elon Musk backed the idea this week and said both companies have formed special committees to explore a transaction, though he later said declaring a deal certain would go too far. Tesla reported third-quarter sales of $28.05 billion, down slightly from $28.1 billion a year earlier. After the earnings call, Tesla shares fell 3% on Thursday and were down 17% for the year, while SpaceX dropped 9%, erasing the prior day’s gains. Any deal would face a higher bar at Tesla, where Musk owns 19.8% of the shares and outside shareholders would have a decisive vote.