SpaceX-Tesla merger would need Elon Musk’s approval

Elon Musk has suggested that SpaceX and Tesla may merge, forming a company valued at around US$3.5 trillion, which would be the largest corporate deal in history. SpaceX, founded in 2002, has grown to become a major player in the space industry, while Tesla, established in 2003, is the world's leading electric carmaker. The potential merger would give the combined entity central control over key components of artificial intelligence, such as chips, energy, and connectivity.

Musk, who owns a majority of SpaceX's voting power and a significant portion of Tesla's shares, believes a merger is a good idea, though he acknowledges that approval from Tesla shareholders would be a significant hurdle. Analysts predict that a deal is likely, with Dan Ives putting the odds at 90% by early 2027. However, potential legal and geopolitical challenges could arise, particularly concerning SpaceX's reliance on government contracts and Tesla's operations in China.