Tesla and SpaceX Explore Merger That Could Create $3.5 Trillion Giant

Elon Musk announced that Tesla and SpaceX have formed special committees to explore a potential merger, sending shares of both companies higher Wednesday and potentially creating a $3.5 trillion colossus in the largest corporate deal ever. The combination would unite the world's biggest rocket launch and satellite internet provider with the second-largest electric vehicle maker, with Musk citing artificial intelligence cooperation as a key rationale. The deal could also trigger automatic performance targets in Musk's Tesla compensation plan, boosting his net worth to over $1 trillion. Wall Street analysts largely view the shares as expensive, with SpaceX trading at 100 times expected earnings and Tesla at 170 times. However, political risks loom, as Democratic lawmakers have called for investigations into SpaceX's federal contracts and Musk's government work, with midterm elections potentially affecting regulatory scrutiny.