Musk Backs Tesla and SpaceX Merger as Insiders Warn of Delays

Elon Musk has spent years intertwining Tesla and SpaceX. Now he is considering putting them into a single company, according to Panorama.

The proposal would formalise a relationship between two businesses in which Musk holds substantial stakes. He 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.

Musk revived speculation about a combination this week by calling it "a good idea," Japan Times reported on October 22. His endorsement brought the possibility of a deal further into public view.

By October 22, that public backing had also become a source of concern inside the discussions. Reuters reported that Musk's endorsement could complicate the talks. According to The Next Web, reporting on those concerns, some people working on the potential merger feared greater shareholder scrutiny and delays of several weeks.

The financial scale remains inconsistently described. October 22 coverage from the Sydney Morning Herald described a $5 trillion deal, while Euronews described a potential $3.5 trillion combined business. The supplied reports do not reconcile those figures.

Other coverage focused on the business case and the market response. Bloomberg Technology framed the proposed merger as Musk's biggest bet yet on AI infrastructure. Inc.com Startups reported that investors were increasingly treating Tesla and SpaceX as a bet on a combination, after their trading had barely moved together over the summer.

This remains a possible merger under discussion, not a completed transaction. The immediate complication is that Musk's public support may make the process harder rather than faster, according to Reuters.

There is also a basic valuation problem beyond the differing headline figures. Business Insider questioned how Wall Street would value a business combining Tesla and SpaceX. That question sits alongside the control implications of Musk's existing stakes.

The next concrete issue is whether shareholder scrutiny slows the discussions as insiders fear. Any proposed terms would also need to clarify the valuation and ownership structure, neither of which is settled in the supplied coverage.

Timing is another open question. Euronews reported that the deal was being aimed at completion before Trump leaves office. Technology also reported insiders' emphasis on that deadline, while saying the reason was unclear. That is a reported ambition, not an agreed closing date.