Elon Musk's public endorsement of a $3.5 trillion SpaceX-Tesla merger has created a 'mess' that could delay the deal
Elon Musk, who admits he is a 'conflicted party' unable to sit in on merger talks now being run by special committees at both SpaceX and Tesla.SpaceX's Starship rocket lifting off from Boca Chica, Texas. Elon Musk's company posted a $4.4bn quarterly profit, reversing a loss of about $1bn a year earlier, as talks over a merger with Tesla continue.
Insiders fear his remarks will draw shareholder scrutiny and push the talks back by several weeks. The worry echoes Tesla's 2016 SolarCity takeover, which ended in years of litigation over Musk's influence. Elon Musk had told investors both boards set up special committees to weigh a tie-up. Advisers have been hired, but talks remain at an early stage.
Regulators may balk at combining Tesla's China operations with SpaceX's defence contracts.
Tesla cut its 2026 spending forecast to roughly $20 billion, and its shares fell.
Musk quipped that he felt like he was 'tap-dancing through a minefield'.
