Tesla-SpaceX merger talk grows as Musk’s control limits challenges
Why it matters: Texas law makes shareholder suits harder, raising the odds Musk could push through a deal between his two biggest companies.
Discussion of a possible merger between Tesla and SpaceX is gaining traction after SpaceX’s blockbuster IPO, with investors, analysts and a senior SpaceX executive publicly weighing the idea of combining Elon Musk’s car and rocket companies. Such a deal would create a giant tech conglomerate spanning electric vehicles, rockets and artificial intelligence. Because Musk controls SpaceX and is Tesla’s largest shareholder, any tie-up would effectively pit him against outside investors on both sides. Legal experts cited by The New York Times said Texas corporate law, where both companies are now domiciled, sets a high bar for shareholder lawsuits, making it difficult for dissenting investors to block a transaction.