Elon Musk, chief chairman of the board of both publicly traded Tesla and privately held SpaceX, said in a blog position Tuesday that he does not have any intention “to merge SpaceX and Tesla.”
The serial entrepreneur’s commentaries come as he mulls plans to take Tesla private, revealed publicly at start through a series of tweets.
The two companies — one focused on producing batteries and exciting vehicles and the other on building and launching rockets — will remain apart, according to Musk. In theory, if SpaceX had enough money, it could buy out Tesla’s slices. SpaceX is one of the most valuable private companies in the world, valued most recently at an guessed $28 billion. SpaceX could – again, in theory – take Tesla private soldier through a buyout, in a similar manner to Dell’s acquisition of EMC in 2015. But Musk’s aim share price of $420 puts Tesla’s worth at $71.3 billion, ante up it out of reach of a takeover by SpaceX.
Instead, Tesla’s move private pass on resemble the structure of SpaceX, he says, which has raised funding throughout every six months for the past three years.
“The structure envisioned for Tesla is like in many ways to the SpaceX structure,” Musk wrote.
Musk referred to “Fidelity’s SpaceX investment” as an warning of how Tesla shareholders would be able to trade shares even after it flagged private. Recent rounds of SpaceX investment have come via Fidelity and others, as the rocket venture raises funding in incremental amounts.
Scan the segments regarding SpaceX in Elon Musk’s Tesla blog tack:
Second, my intention is for all Tesla employees to remain shareholders of the company, fitting as is the case at SpaceX. If we were to go private, employees would still be accomplished to periodically sell their shares and exercise their options. This purposefulness enable you to still share in the growing value of the company that you attired in b be committed to all worked so hard to build over time.
Third, the intention is not to combine SpaceX and Tesla. They would continue to have separate ownership and governance designs. However, the structure envisioned for Tesla is similar in many ways to the SpaceX framework: external shareholders and employee shareholders have an opportunity to sell or buy roughly every six months.