"SpaceX-Tesla Merger Could Be Announced as Early as Next Month"

"Separating Tesla's China Factories Is a Hurdle"
"Aim to Complete Merger During Trump's Term"

Reuters-Yonhap News Agency

SpaceX and Tesla may officially announce a merger as early as next month, Bloomberg reported on Nov. 12 (local time). If completed, the deal is expected to be the largest merger and acquisition in history.

Citing sources who requested anonymity, Bloomberg reported that “the boards and advisers of SpaceX and Tesla are coordinating on various issues, including the terms of the merger and the governance structure of the combined company.” It added that “a merger agreement could be announced as early as December, while a scenario in which the announcement is delayed until early 2027 is also under discussion.”

If the merger agreement between the two companies is finalized, it is expected to be the largest merger and acquisition in history. SpaceX's market capitalization has reached $1.9 trillion (approximately 2,538 trillion won) since its initial public offering (IPO) in June, while Tesla's is currently estimated at around $1.5 trillion. A merger would create a giant company with a market capitalization of more than $3 trillion. Five companies currently listed on the New York Stock Exchange belong to the so-called “$3 trillion club,” with market capitalizations of at least $3 trillion: Apple, Microsoft, Alphabet, Nvidia and Amazon.

Chief Executive Officer (CEO) Elon Musk is reportedly pushing to accelerate the merger. According to Bloomberg, Musk is rushing to announce the merger before Democrats, who won a sweeping victory in the U.S. midterm elections, become the majority party in both the Senate and the House of Representatives when the congressional session begins next January. The rationale is that completing the merger during President Donald Trump's term would help the companies avoid pressure from Democrats. The Democrats, who scored a sweeping victory in the midterm elections, previously vowed to thoroughly investigate Musk's business and political activities after he strongly supported President Donald Trump and the Republican Party.

However, concerns have also been raised that SpaceX, which is deeply involved in the U.S. defense sector, would face various hurdles in merging with Tesla, which has a manufacturing base in China, including national security concerns and diplomatic friction between the United States and China. In a research report sent to clients last month, JPMorgan analyst Rajat Gupta noted, “SpaceX is a company with national security sensitivities, given its many contracts with the U.S. government and the Department of Defense.” He added, “Unless Tesla's manufacturing base in China is separated, it could pose a key challenge to securing regulatory and shareholder approval for the merger.”

This content was produced with the assistance of AI translation services.