Tesla-SpaceX merger talks spotlight Musk’s power and weak oversight

Elon Musk announced Tuesday that independent directors at Tesla and SpaceX have formed special committees to explore combining the two companies, a deal that would create a roughly $3.5 trillion giant at current market values. Musk said he cannot participate in the talks due to being a "conflicted party." The proposed merger highlights accountability concerns following SpaceX's June IPO, which made Musk the world's first trillionaire on paper. Musk controls about 82% of SpaceX's voting power despite owning 45% of shares, and the company uses exemptions to avoid independent board committees. CalPERS and New York officials called the governance structure "the most management-favorable ever brought to U.S. markets at this scale." Regulators have struggled to rein in Musk, with courts citing First Amendment protections in a labor case and approving an SEC settlement despite "serious misgivings." Workplace safety data shows Starbase injury rates nearly six times the industry average, and a worker died there in May. Musk said a merger would require approval from a majority of all outstanding Tesla shares.