KATHMANDU: Reports of a possible merger between Tesla and SpaceX have sparked debate in the US market over Elon Musk’s growing influence across his companies.
According to reports, Musk has discussed combining Tesla and SpaceX ahead of SpaceX’s expected Nasdaq IPO in June. SpaceX is targeting a valuation of around $1.75 trillion, while Tesla’s market value is currently close to $1.6 trillion.
If the merger moves forward, the combined company could be valued at more than $3 trillion.
Analysts say the deal would become Musk’s fourth major transaction involving companies under his control. Previous deals include Tesla’s acquisition of SolarCity in 2016, Musk’s takeover of Twitter in 2022, and recent transactions involving xAI and SpaceX.
Reports also noted concerns over Musk’s voting control. While Musk owns around 20 percent of Tesla shares, he controls more than 85 percent voting power at SpaceX through special voting shares.
Some investors and analysts believe that combining Tesla’s EV and energy business with SpaceX’s satellite, AI, and robotics operations could create a large technology group. Others have raised concerns about valuation, shareholder interests, and governance issues.
Tesla shareholders are already facing legal disputes linked to the company’s investment in xAI earlier this year. Analysts believe a Tesla-SpaceX merger could face even closer scrutiny if officially proposed.
