Dear Members of the Board and Special Committee,
This is a call to action. As Tesla shareholders, we are behind the mission. But the mission has expanded: no longer is Tesla just about EVs; now its mission is sustainable abundance on Earth - and in Space. This new mission is best brought to fruition by a merger with SpaceX.
STRATEGIC RATIONALE
The two companies share complementary strengths in artificial intelligence, robotics, energy, advanced manufacturing, chip design, software, and launch capability. The companies' several joint ventures - Terafab, SI Space Compute, Macrohard/Digital Optimus, Megapods (multi-trillion dollar potential products) are just the start of what the combined company could do. Our same investment dollars would have more potential to grow and more shareholder value would be unlocked.
KEY ADVANTAGES OF A MERGER
◆ EACH SOLVES THE OTHER'S CONSTRAINTS: Tesla needs chips and capital. SpaceX needs Megapacks for Colossus. That is just the start of the overlaps and symbiotic synergies unlocked.
◆ A MOAT: The combined entity will have a first-mover advantage in a category of one - the ONLY company to have the full vertical Physical AI stack. A PLATFORM that will keep creating new opportunities.
◆ELON MUSK IS A BUILDER: Elon Musk's track record speaks for itself; he has earned the right to solve constraints and build new products without being handcuffed by an unwieldy structure. A merger simplifies his life and lets him focus on solving ever bigger problems and building new products.
◆ THE SUM IS GREATER THAN THE PARTS: Individually each company may be worth $8 trillion in 10 years, but together they could be worth many times that, tackling projects too big for either company to take on alone. When humanity goes galactic, then interstellar, what is the cap on the addressable market?
◆ EXPENSE REDUCTION: Overlapping functions can be streamlined.
DELETE THE PART
It is time to delete the unnecessary part/process: The two Companies being separate and the unnecessary bureaucracy it creates are hindering Elon Musk and Tesla/SpaceXSI employees from creating real value - like slowing joint projects with burdensome conflict committees. We want the time spent on the projects - not red tape.
It is time to delete the unnecessary part/process: The two Companies being separate and the unnecessary bureaucracy it creates are hindering Elon Musk and Tesla/SpaceXSI employees from creating real value - like slowing joint projects with burdensome conflict committees. We want the time spent on the projects - not red tape.
ACT NOW
Time is of the essence: AI, robotics, and energy are moving fast. Fiduciary duty is often thought of as just due diligence, but inaction can be costly to shareholders too. Tesla shareholders lost the chance to own xAI, now a significant contributor to SpaceX's revenue. We don't want to lose out again.
Time is of the essence: AI, robotics, and energy are moving fast. Fiduciary duty is often thought of as just due diligence, but inaction can be costly to shareholders too. Tesla shareholders lost the chance to own xAI, now a significant contributor to SpaceX's revenue. We don't want to lose out again.
SHAREHOLDER SUPPORT
We trust the special committee to negotiate the best possible terms for Tesla shareholders taking into account that CyberCab and Optimus are about to scale, Tesla's all-time high, and internal revenue projections. A large, engaged group of retail shareholders is ready to back a well-structured combination, and we are organizing so turnout is high when the vote comes. Please bring it to a vote as soon as the terms are negotiated and documented.
We trust the special committee to negotiate the best possible terms for Tesla shareholders taking into account that CyberCab and Optimus are about to scale, Tesla's all-time high, and internal revenue projections. A large, engaged group of retail shareholders is ready to back a well-structured combination, and we are organizing so turnout is high when the vote comes. Please bring it to a vote as soon as the terms are negotiated and documented.
Thank you for your work. You have the support of the retail shareholders who sign this letter.
Sincerely,
Alexandra Merz
Amy Steffens
On behalf of the attached shareholders
Amy Steffens
On behalf of the attached shareholders
(Note 1)
The Attached CONFIDENTIAL Tesla shareholder data is listed in compliance with Tesla Bylaws section 2.4 (b): Full Name, Address and Number of Shares Held (on the date of the letter).
The shareholder list contains Personally Identifiable Information (PII) including highly Sensitive Personal Financial Information.
For the European Union: Confidential data is subject to EU-GDPR (General Data Protection Regulation).
It is provided for the Tesla Board of Directors & Secretary’s use in furtherance of shareholder interests at the Tesla Board of Director’s discretion and in support of the Tesla Board of Directors. If this list is subject to discovery, or other publication, please redact, to the max extent possible, PII or Sensitive Financial Information.
The Attached CONFIDENTIAL Tesla shareholder data is listed in compliance with Tesla Bylaws section 2.4 (b): Full Name, Address and Number of Shares Held (on the date of the letter).
The shareholder list contains Personally Identifiable Information (PII) including highly Sensitive Personal Financial Information.
For the European Union: Confidential data is subject to EU-GDPR (General Data Protection Regulation).
It is provided for the Tesla Board of Directors & Secretary’s use in furtherance of shareholder interests at the Tesla Board of Director’s discretion and in support of the Tesla Board of Directors. If this list is subject to discovery, or other publication, please redact, to the max extent possible, PII or Sensitive Financial Information.