Exclusive-Musk’s public endorsement of SpaceX-Tesla deal may throw a wrench in talks

Elon Musk's recent public support for a potential $3.5 trillion merger between SpaceX and Tesla has sparked concerns among insiders involved in the negotiations. The announcement has raised questions about the protection of shareholder interests and the potential delay of the process by several weeks. The disclosure has created complications for the talks, as it could lead to doubts about the representation of Tesla shareholders' interests.

This development echoes similar concerns that arose during Tesla's 2016 acquisition of SolarCity, which resulted in years of litigation over Musk's role in the deal. Musk, who is the CEO of both SpaceX and Tesla and holds significant stakes in both companies, recently informed investors that the two entities are exploring the largest corporate transaction in history.

However, the backlash to his remarks is now being reported for the first time. Discussions between SpaceX and Tesla are still in the early stages, with three sources familiar with the matter confirming that the companies have hired advisers to ensure a thorough examination of the potential merger structures.