Musk publicly supports the merger of SpaceX and Tesla, sparking shareholder doubts about the fairness of the merger.

BlockBeats news, October 22 — Elon Musk previously publicly confirmed that SpaceX and Tesla are evaluating a potential merger. In response, a person with direct knowledge of the negotiations said that Musk proactively disclosing the transaction's progress and expressing support in front of investors could raise shareholder doubts about the fairness of the deal, slow down the negotiation process, and even subject the transaction to longer legal review. Typically, while independent directors are evaluating a major transaction, relevant parties avoid publicly expressing preferences to prevent compromising the fairness of the process or giving the impression that the decision has already been predetermined.

Market analysis points out that if SpaceX and Tesla ultimately merge, the transaction size could reach $3.5 trillion. Such a massive deal would not only involve corporate governance and shareholder rights but could also trigger scrutiny from regulators worldwide. Tesla has significant operations in China, while SpaceX is involved in U.S. defense projects and the artificial intelligence sector. The two companies' business characteristics, regulatory environments, and national security-related factors differ markedly, potentially increasing the complexity of merger approval.