Elon Musk's endorsement of SpaceX-Tesla merger talks alarms insiders
Elon Musk's public endorsement of a potential $3.5 trillion merger between SpaceX and Tesla has alarmed insiders, who fear his comments could invite shareholder scrutiny and delay negotiations by several weeks, according to a person with direct knowledge of the talks. The disclosure created a "mess" for the process, raising questions about how Tesla shareholders' interests would be represented. Concerns echo Tesla's 2016 acquisition of SolarCity, which sparked years of litigation over Musk's role. Musk, CEO of both companies, revealed the talks and said special committees were evaluating the deal. Musk owns nearly a fifth of Tesla and just under half of SpaceX, and advisers are ensuring his recusal from discussions. A merger would be the largest in history, surpassing SpaceX's acquisition of xAI, and would face global regulatory scrutiny due to Tesla's China business and SpaceX's defense work.