3 Hurdles Could Complicate a Tesla and SpaceX Merger, Says Ex-Tesla Director

Former Tesla board member Steve Westly said valuation, regulatory approval and Tesla’s China operations could complicate a Tesla-SpaceX merger of companies each worth over $1 trillion. Westly expects both boards’ special committees to move quickly, but Tesla and SpaceX CEO Elon Musk said no terms are agreed and he cannot join independent directors’ talks as a conflicted party. Valuation would set the exchange ratio, or how many SpaceX shares each Tesla share would receive. Tesla won SEC staff clearance on Sept. 29 for a retail voting program letting small shareholders pre-authorize board-aligned votes. China remains a hurdle: SpaceX drew about a fifth of its 2025 revenue from U.S. federal agencies, and Tesla’s Shanghai plant historically supplied over half its deliveries.