Musk-backed Tesla-SpaceX merger talks hit scrutiny over control
What's new: Special committees are exploring structures for a deal that could exceed $3.5 trillion, but shareholders may face conflicts questions.
Elon Musk’s push to combine Tesla and SpaceX is drawing early scrutiny as both companies weigh what could become the largest corporate transaction on record. Musk has publicly backed a tie-up, and reports say the companies have formed special committees and hired advisers to study options including an all-stock merger, a SpaceX acquisition of Tesla or a new holding company. The talks remain at an early stage. Investors and analysts are focusing on governance because Musk leads both companies and holds major stakes in each, reviving comparisons with Tesla’s 2016 purchase of SolarCity. Tesla shares fell 3% on Thursday, while SpaceX dropped 9% after earlier gains.