Musk backs $3.5 trillion Tesla and SpaceX merger as insiders raise concerns

Elon Musk's proposal would bring Tesla and SpaceX into a single business valued at about $3.5 trillion, according to Euronews. It would formalise a relationship between companies whose activities have been intertwined for years.

Control is a central part of the story. Musk owns nearly a fifth of Tesla and just under half of SpaceX, NDTV Top Stories reported. Analysts cited in that coverage said a merger would give him control of the combined entity.

On October 20, Musk said both companies had formed special committees to examine a merger, according to Notícias ao Minuto. Xataka placed the announcement during SpaceX's earnings conference. That moved the idea beyond speculation, although it did not establish that a deal would happen.

By October 22, Musk's public support was itself becoming a source of concern. Reuters reported that his endorsement could complicate talks. People working on the possible merger feared his comments could draw shareholder scrutiny and delay the process by several weeks, according to The Next Web, reporting on that account.

Investors were also responding to the possibility. Inc.com Startups reported on October 22 that the companies had barely moved together during the summer, but were increasingly trading as a bet on a combination.

The same day, reports raised questions about both timing and financial logic. Technology reported that insiders wanted the merger completed before Trump leaves office, while saying the reason was unclear. Bloomberg published an opinion assessment by Liam Denning arguing that recent earnings made the proposed pairing look financially awkward.

The companies are exploring a merger, not announcing a completed transaction. The special committees provide a process for examining it, but the supplied coverage does not establish agreed terms or a closing date.

Musk's backing is not the only approval question. Breaking News on Seeking Alpha Business & Economy reported that SpaceX says a Tesla merger needs his approval. Meanwhile, Business Insider highlighted the difficulty Wall Street could face in valuing the combined business. The $3.5 trillion figure describes the proposed scale, not a settled transaction price.

The next substantive development would be findings from the special committees or concrete merger terms. Those would help shareholders assess valuation and control, rather than relying on Musk's public enthusiasm.

The reported political timetable also remains unresolved. Euronews described a deal aimed at closing before Trump leaves office, but the coverage does not establish a firm deadline. Whether public scrutiny slows the talks, as insiders fear, is another immediate test.