Pierre Ferragu

Tesla–SpaceX Deal Faces a 50% Shareholder Approval Threshold

New Street Research managing director Pierre Ferragu called a SpaceX–Tesla combination “extremely tangible,” citing Elon Musk’s endorsement and special committees at both companies reviewing the proposal. But he said winning approval at Tesla would require support from 50% of all shareholders, not just half of those who vote. Investors would also have to weigh Musk’s likely control of a combined company and assess SpaceX, a business many Tesla shareholders may know less well.