Elon Musk Just Lifted His Tesla Voting Stake to Nearly 20%. Could a SpaceX Merger Be Next?
Does consolidating this much control clear the path to the biggest merger in history?
Elon Musk Just Lifted His Tesla Voting Stake to Nearly 20%. Could a SpaceX Merger Be Next?
Overview
Elon Musk now controls nearly 20% of the vote at Tesla (NASDAQ: TSLA). In a Form 4 filed with the Securities and Exchange Commission last week, the electric-car maker's CEO exercised the entire 2018 compensation award -- 303,960,630 options at a split-adjusted strike of $23.34, against a stock that closed near $405 the day of the transaction. He didn't sell any shares on the open market to do it. A separate filing the same day put his stake at 19.9% of the company.
Notably, Musk could have waited until August, the default exercise date under his agreement with Tesla. Instead, he locked in the votes days after SpaceX (NASDAQ: SPCX) began trading publicly -- a sequence that makes the long-running question of a Tesla-SpaceX merger sound less hypothetical.
Image source: The Motley Fool.
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Originally published at www.fool.com.
