This was done via net share settlement — Tesla withheld ~17.5 million shares to cover the ~$7.1 billion exercise cost. No cash changed hands and no shares were sold on the open market. Elon's Tesla ownership rose to roughly 19.9% (~20%), giving him stronger immediate voting power.Larry emphasizes this was not forced. The deadline was August 15, 2026. Elon acted in mid-June 2026 with no immediate tax or cash deadline forcing the move. It is a cash-free, tax-neutral event at this stage. Larry initially thought the companies would wait until SpaceX lockups ended (end of June 2027) for full price discovery. After deeper analysis, he reversed himself. The lockups mainly restrict limited partners, not major/general partners who are aligned with the companies. General partners voting is actually better for the merger from the companies' perspective.

Conclusion from Larry. This move is strategic preparation (tidying the books) to shore up Elon's ~20% voting stake in Tesla ahead of a merger vote. It signals that merger plans are advancing. He now believes an announcement could come imminently.

Full merger close: Complex process (due diligence, negotiations, regulatory approvals). Not feasible in under ~9 months. Even with an immediate announcement, completion unlikely before mid-2027 (around/after June 2027 SpaceX lockup end).

Tesla and SpaceX shareholder votes needed. SpaceX vote is a formality. Tesla vote more contested but feasible with Elon's stake

He sees Tesla shares potentially moving into the $600–$800 range around the announcement period