Ex-Tesla Director Cites Valuation, Regulation, and China Operations as Hurdles to Tesla-SpaceX Merger

Former Tesla board member Steve Westly stated that valuation, regulatory approval, and Tesla's China operations could complicate a potential merger between Tesla and SpaceX, both valued over $1 trillion. While Westly expects special committees to move quickly, Elon Musk said no terms have been agreed upon. Key hurdles include determining the exchange ratio, navigating regulatory approvals in Washington and Beijing, and addressing national security concerns related to Tesla's Shanghai plant, which historically accounts for over half of its deliveries, given SpaceX derives about one-fifth of its 2025 revenue from US federal agencies. Tesla recently received SEC staff clearance for a retail voting program, but automotive revenue fell 3% year over year in the third quarter.