Sources say Tesla (TSLA.O) and SpaceX (SPCX.O) are targeting a merger
announcement in 1H 2027, aiming to complete the transaction during President
Trump's current administration. The combined company would have an implied
market value of about $3.7 trillion, further consolidating Elon Musk's control
of his corporate holdings. With U.S. midterm elections under two weeks away, a
Democratic takeover of either chamber could prompt probes or tighter oversight
of Musk's businesses; a continued sell-off in chip and AI stocks could also
erode investor support and jeopardize the deal. REX Financial research head Bill
Birmingham said Musk and his advisers are clearly trying to use this window; the
timing is both favorable and critical.
