Elon Musk publicly backed the merger of SpaceX and Tesla, prompting shareholders to question the fairness of the merger.

Elon Musk has previously publicly confirmed that SpaceX and Tesla are evaluating the possibility of a merger. A person directly familiar with the negotiations stated that Musk’s voluntary disclosure of the transaction progress and expression of support in front of investors may prompt shareholders to question the fairness of the deal, slow down the negotiation process, and even expose the transaction to extended legal scrutiny. Typically, during the period when independent directors assess a major transaction, relevant parties refrain from publicly stating their preferences, to avoid undermining the process’s fairness or raising external suspicions that the decision has been preordained. Market analysis notes that if SpaceX and Tesla ultimately merge, the deal could be valued at up to $3.5 trillion. Such a massive transaction involves not only corporate governance and shareholder rights, but may also draw reviews from global regulators. Tesla holds significant business operations in China, while SpaceX is involved in U.S. defense projects and the artificial intelligence sector. The two companies have distinct business attributes, regulatory environments, and national security-related factors, which may complicate merger approval.