Elon Musk backs Tesla-SpaceX merger despite regulatory hurdles
Elon Musk endorsed merging Tesla and SpaceX on Tuesday, a deal that could create a $3.5 trillion company spanning electric vehicles, rockets, AI, and robotics, though no formal agreement has been announced. Musk cited growing operational ties between the firms, including AI software, chips, robotics, and orbital infrastructure. A merger would combine Tesla's vehicles and batteries with SpaceX's Starlink and launch services, but faces significant regulatory and shareholder hurdles. The deal could raise national-security concerns since SpaceX works with the US military while Tesla operates in China. Critics also question financial risks, Musk's voting control, and the uncertain commercial outcomes of costly projects like Starship and robotaxis.