Bloomberg: SpaceX investors ready to grill Musk on a Tesla merger
Bloomberg reports SpaceX investors are preparing to question Elon Musk about a potential Tesla merger at the company's first quarterly earnings call on Aug. 4 — the stakes matter because Musk controls only about 20% of Tesla's voting power versus roughly 80%+ of SpaceX's, meaning unfavorable merger terms could leave Tesla shareholders bearing the risk.
Musk first floated the idea publicly on Tesla's Q2 2026 earnings call on July 22, saying there was "more and more overlap" between Tesla and SpaceX, while stopping short of a commitment and deferring to Tesla's legal team on "the appropriate process."
Since then, according to Bloomberg, investor unease has grown over what merger terms might look like. Musk holds only about 20% of Tesla's voting power but controls roughly 80%+ of SpaceX's — so if a deal were struck near SpaceX's reported $1.75 trillion valuation against Tesla's roughly $1.6 trillion market cap, Tesla shareholders could end up with a less favorable exchange ratio. Investors are expected to press Musk directly on this at the Aug. 4 call.
The same day, Reuters reported that SpaceX's first results will also put Musk's expanding AI spending under Wall Street's microscope. Musk has said he intends to use Starlink's profits to bankroll AI and space ventures, a strategy critics call unsustainable. Wall Street estimates Starlink connectivity revenue at roughly $3.82 billion and operating profit at about $1.42 billion for the quarter.
Prediction market Kalshi currently prices a 74% chance the two companies merge by May 2027 — a gauge of betting-market sentiment, not a confirmed plan.
The earnings call is scheduled for after the US market close on Tuesday, Aug. 4, with Musk's comments on both the merger and AI spending strategy seen as the main things to watch.
Summaries are prepared by the Tesla Briefing editorial team and may not capture every nuance of the original reporting. You are solely responsible for your own investment decisions.