Musk Public Backing of SpaceX and Tesla Merger Prompts Insider Scrutiny

By EC Assets · Published 23 October 2026

Elon Musk's public backing of a potential combination between SpaceX and Tesla has introduced complications into transaction discussions. The remarks rattled company insiders who warned of heightened regulatory scrutiny following the statements. Shares of Tesla and SpaceX fell in premarket trading following the commentary. Any completed transaction between the two businesses requires direct authorization from Musk, who controls the rocket and artificial intelligence enterprise. SpaceX confirmed on Thursday that any merger agreement with Tesla requires formal approval from Musk. In parallel with merger discussions, SpaceX disclosed purchases of Tesla Megapack systems. The rocket company noted that both organizations maintain existing operational ties. The public remarks regarding the potential deal generated internal operational concerns, with the surrounding discourse described as creating a mess. Insiders expressed alarm that public discussions would trigger intense oversight from regulatory authorities. Following the remarks, a Rivian executive publicly urged Tesla to stop conducting calls of that nature. Alongside the deal turbulence, valuation assessments for Tesla experienced an upward adjustment. Morningstar increased its fair value estimate for Tesla to $475 from $450. The increase reflected accelerating adoption of Full Self-Driving technology and reduced corporate spending assumptions. Planners are aiming for a formal merger announcement in the first half of 2027. The proposed calendar is structured around the objective of closing the transaction during Donald Trump's presidential term. Next steps center on whether Musk formally signs off on transaction terms ahead of the targeted 2027 announcement window. This article is intended for informational purposes only. It does not constitute investment advice.