Musks Next Move May Be a Mega-Merger of SpaceX and Tesla

SpaceX may have held the biggest initial public offering of all time, but Wall Street may be expecting something even bigger from Elon Musk, the rocket company’s chief executive.Many of his fans and investors expect him to merge SpaceX with Tesla, the maker of electric cars where he is also chief executive, joining most of his businesses into a single roughly $4 trillion tech conglomerate, a sort of Elon, Inc.Investors, analysts and even a top SpaceX executive have talked about the merits of such a deal on social media, in research notes and in a TV interview.The two companies have long shared executives and other resources and are jointly developing multibillion dollar projects.Because Mr.

Musk controls SpaceX and is Tesla’s largest shareholder, he would essentially be making a deal with himself.That would raise legal issues and probably prompt lawsuits claiming that he ran roughshod over the interests of other shareholders.But no legal action is likely to stop Mr.

Musk, legal experts say.Corporate law in Texas, where Tesla and SpaceX have their corporate domiciles, makes it very difficult for unhappy investors to challenge management decisions.Tesla relocated to Texas from Delaware last year after Mr.

Musk expressed dismay about a state court ruling — later overturned — that challenged a 2018 pay package that helped pad the fortune of the world’s richest person.SpaceX moved to the Lone Star state, from Delaware, in 2024.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.

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