Incoming Texas AG vows rigorous scrutiny of potential SpaceX-Tesla merger - report Luke Juricic Fri, November 13, 2026 at 9:11 AM EST 3 min read SPCX -0.33% TSLA -1.29% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Investing.com -- Texas Attorney General-elect Nathan Johnson signaled that a potential merger between SpaceX (NASDAQ:SPCX) and Tesla Inc (NASDAQ:TSLA) will face rigorous state-level oversight, introducing new political headwinds for Elon Musk's corporate consolidation plans. Speaking to Bloomberg on Thursday, the incoming Democratic official warned against excessive corporate concentration as the state's two most valuable companies advance deal talks.
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"Any merger of companies of that consequence warrants tremendous scrutiny," Johnson said, noting that Musk's empire risks crossing the line into bending public power for private gain. The remarks follow last week's Democratic electoral sweep in Texas, ending decades of Republican dominance under which Musk relocated much of his business footprint and spent hundreds of millions of dollars backing GOP candidates.
Johnson, who takes office in January alongside Governor-elect Gina Hinojosa and U.S. Senator-elect James Talarico, pledged to refocus the attorney general's office on core antitrust litigation and consumer protection rather than the culture-war initiatives of outgoing Attorney General Ken Paxton. While declining to address specifics of the transaction, Johnson asserted that Musk previously benefited from political deference and stated he has no qualms about examining the billionaire's relationships with the state.
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Meanwhile, merger negotiations between SpaceX and Tesla have gained momentum, with Bloomberg reporting that a formal agreement could be announced as early as December or potentially slip into early 2027. Independent special committees formed by both boards last month are actively evaluating a combination that would unite electric vehicles, energy storage, robotics, artificial intelligence, and aerospace under a single corporate structure.
The operational rationale for a tie-up builds on deepening technological overlap, including SpaceX's acquisition of xAI in February and the companies' Terafab chip manufacturing joint venture, which targets volume production by the third quarter of 2028. On SpaceX's third-quarter earnings call last month, its second report since a blockbuster initial public offering earlier this year, Musk argued that a union holds "a lot of merit" given synergies across chip design, super intelligence software, and the Starmind satellite constellation.
Against that backdrop, any resulting transaction would represent the largest merger on record and faces formidable structural and regulatory obstacles beyond Texas. Beyond state-level antitrust reviews, the deal must navigate federal scrutiny over SpaceX's U.S. defense contracts alongside Tesla's heavy manufacturing reliance on China, while also clearing a high governance bar requiring approval from 50% of all outstanding Tesla shares.
Incoming Texas AG vows rigorous scrutiny of potential SpaceX-Tesla merger - report
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