Elon Musk can’t vote on his own merger
Shareholders hold the real power in the SpaceX-Tesla deal.
The story
A potential SpaceX-Tesla merger faces challenges, primarily from Tesla's shareholders, not Elon Musk, who is conflicted due to his ownership stake.
Source: fortune.com
Our reading
Elon Musk, who owns both SpaceX and Tesla, is essentially a spectator in his own merger. His 85% voting power at SpaceX and 20% at Tesla makes him a ‘conflicted party,’ meaning he can’t be on the committees deciding the deal. That’s like being the host of a party but not allowed to invite anyone. The real problem isn’t Musk’s enthusiasm—it’s getting Tesla shareholders to agree. And according to one expert, it’s like herding cats. But here’s the kicker: if Tesla shareholders don’t vote, their shares count as a no. So even if you’re not voting, you’re still voting against the deal. That’s not just bureaucratic—it’s a masterclass in passive sabotage.
