Lauge Risom Koch 
Independent directors at Tesla and SpaceX are currently exploring a potential corporate merger that would create a $3.5 trillion technology giant.
Independent directors at Tesla and SpaceX have formed special committees to formally explore combining the two technology companies. According to Fortune, this proposed corporate deal would create a massive entity with an estimated market value of roughly $3.5 trillion. During a recent earnings call, Elon Musk stated, “This is definitely the kind of question where I feel like I’m tap dancing through a minefield.”
These merger discussions occur shortly after the initial public offering of SpaceX temporarily pushed the net worth of its founder past $1 trillion. The aerospace company achieved a market valuation exceeding $2 trillion during its first day of public trading in June. According to an analysis by Oxfam America, this unprecedented concentration of personal wealth represents a new pinnacle of oligarchy.
Corporate governance experts remain concerned about the internal accountability structures established within these massive technology organizations. The aerospace manufacturer utilizes a multi-class share structure granting the chief executive approximately 82% of its total voting power. The current corporate charter limits shareholder lawsuits and explicitly prevents regular investors from removing the chief executive.
Internal transactions and regulatory challenges
Transactions between companies controlled by the same executive have recently drawn significant scrutiny from financial market analysts. Tesla previously invested $2 billion into the artificial intelligence startup xAI despite a nonbinding shareholder vote failing to approve the measure. Days after this automotive investment, SpaceX formally acquired the identical artificial intelligence startup in a massive corporate deal.
Financial filings indicate that the automotive manufacturer conducted more than $573 million in business with affiliated companies during the 2025 fiscal year. These internal corporate transactions included battery sales to the artificial intelligence startup and vehicle sales to the aerospace manufacturer. The internal audit committee officially approved these financial arrangements, and analysts do not allege any illegal conduct regarding the transfers.
Federal regulators frequently encounter significant legal difficulties when attempting to restrict the controversial actions of the billionaire executive. The Securities and Exchange Commission previously sued the executive for delaying mandatory financial disclosures regarding social media stock purchases. The agency ultimately settled for a $1.5 million financial penalty without securing a formal admission of corporate wrongdoing.
Workplace safety and shareholder influence
Independent analysts also raised serious concerns regarding worker safety protocols at the primary aerospace manufacturing facility in South Texas. The regional production site recently recorded an injury rate nearly three times higher than the overall aerospace manufacturing average. Federal regulators actively cited the company for numerous serious safety violations following a crane collapse and a subsequent worker fatality.
Despite these ongoing operational controversies, the recent public stock offering successfully created substantial wealth for thousands of aerospace employees. Approximately 4,400 company workers possessed enough equity to become millionaires when the stock began trading publicly. The aerospace company also currently maintains a $4 billion federal contract with NASA to conduct two crewed lunar landings.
The proposed combination of the automotive and aerospace manufacturers will heavily test the actual influence of outside shareholders. The chief executive noted that any corporate combination would require approval from a majority of all outstanding automotive shares. The most recent annual proxy filing for the automotive manufacturer currently includes no formal proposals regarding the potential corporate merger.
