Ahead of Tesla's Q2 earnings call, at least 20 investor questions on a forum raised the possibility of a merger with SpaceX. One retail investor representing 100,000 shares asked directly about a tie-up.
Tesla investors are pushing for answers about a potential merger with SpaceX ahead of the company's second-quarter earnings call Wednesday.
Shareholders submitted questions through an online forum. At least 20 of them touched on a possible tie-up with the rocket company, making it one of the most-discussed topics. One retail investor, representing roughly 100,000 Tesla shares, asked: "Will SpaceX merge with Tesla?" Others asked whether shareholders would get a vote on any proposed deal and how executives would ensure Tesla investors are treated fairly.
Another retail investor raised the conflict between a merger and Musk's compensation plan. The plan requires the Tesla CEO to hit a series of ambitious goals to unlock the full $1 trillion payout. "To reward long-term Tesla retail shareholders for their loyalty, can you commit to achieving at least half of the goals outlined in your 2025 compensation plan before considering any offers to acquire or merge Tesla?" the investor wrote in a post that received nearly 300 votes. Musk's goals include passing 20 million EV sales and 10 million Full Self-Driving subscriptions.
Longtime Tesla investor Ross Gerber, CEO of Gerber Kawasaki, told Business Insider he expects the merger to come up on the earnings call.
He added that the slow pace of Tesla's robotaxi expansion, which he said underpinned the company's $1.4 trillion valuation, is investors' main focus right now. Gerber still expects a tie-up with SpaceX to happen eventually.
"SpaceX is where much of the innovation and excitement is right now, while Tesla's core EV business is under increasing pressure," Gerber said. "If investor interest continues shifting away from EVs and toward SpaceX's growth story, a merger may become a way to reframe Tesla around Elon's stronger innovation platform."
SpaceX raised $86 billion in an IPO last month. Tesla's stock is down nearly 8% over the past month. SpaceX shares have fallen 35% from their post-IPO peak.
Tesla and SpaceX are already collaborating on Musk's Terafab chip-building project. SpaceX president Gwynne Shotwell did not rule out a merger last month. "That might make Elon's life a little easier, actually," Shotwell said. "There's no question that there's synergies between Tesla and SpaceX in our futures, definitely, there's a convergence of a kind of what we're all trying to accomplish in the future."
Tesla reports Q2 results after the bell Wednesday.
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