Elon Musk, CEO of both SpaceX and Tesla, may merge the two companies following SpaceX’s recent $85 billion IPO that values it over $1 trillion higher than Tesla’s worth of $1.5 trillion [1, 2, 3]. Investors, analysts, and executives have discussed potential benefits of combining the businesses into a roughly $4 trillion tech conglomerate [1, 2, 3]. SpaceX and Tesla already share executives, resources, and collaborate on multibillion-dollar projects such as the $55 billion Terafab chip factory [1, 2, 3]. The companies also have significant commercial ties: SpaceX bought $506 million in Tesla Megapack batteries and $131 million in Cybertrucks in the past year [3]. Both SpaceX and Tesla moved their legal domiciles to Texas—SpaceX in 2024 and Tesla in 2025—where shareholder lawsuits face a 3% ownership threshold, making legal challenges to a merger more difficult [1, 2]. Tesla shareholders must approve the merger with a two-thirds vote under Texas law [1]. Legal experts believe lawsuits may be filed but unlikely to block a merger [1, 2]. SpaceX president Gwynne Shotwell did not rule out the merger and said it "might make Elon’s life a little easier, actually" [3]. Some Tesla investors support the idea. Ross Gerber said, "Are they better off together or apart? I think they're better off together," while analyst Seth Goldstein noted, "Elon would have the resources to send his team wherever he wanted to in order to make the most impact" [3]. University of Delaware law professor Charles Elson commented on Musk’s control, saying, "Basically he’s gotten to the point where he can do almost anything he wishes" [2]. The next concrete step would be Tesla shareholders voting to approve the merger, which requires two-thirds majority under current Texas regulations [1].