# Musk Hints at Potential Tesla-SpaceX Merger EU regulatory hurdles and financial implications scrutinized - **Source:** [The Next Web](https://brifing.si/source/afe24b20-b275-4c19-b9a6-8bb3c8babae7) - **Published:** 2026-09-15 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/3f1076b3-3836-4c71-a7e9-5f5bd6cd3899 ## Merger speculation resurfaces Elon Musk hinted at potential Tesla-SpaceX integration during the All-In Summit, responding to questions about their separation with 'great question'. The companies already collaborate through Terafab, a $16.8B Texas chip plant supplying both firms. SpaceX's recent $75B valuation and public listing make such a deal financially plausible. However, EU merger regulations pose significant hurdles, requiring Commission approval before implementation. ## EU regulatory thresholds The EU Merger Regulation mandates notification when combined worldwide turnover exceeds €5B, with at least two parties each generating over €250M within the bloc. Tesla easily meets these criteria through European car sales, while SpaceX's European revenue remains undisclosed. Starlink's operations across most EU member states suggest SpaceX likely qualifies. Notification triggers a minimum 25-day review, with full investigations potentially lasting 125 working days. ## Financial considerations SpaceX's June IPO valued the company at $1.75T, raising $75B and surpassing Saudi Aramco's 2019 record. This provides SpaceX with public stock for potential acquisition currency. The Terafab joint venture demonstrates existing collaboration, with its first phase costing $16.8B to supply components for Tesla vehicles and SpaceX orbital computing. Such financial scale makes merger discussions more than theoretical. ## Implementation barriers EU regulations prohibit deal implementation before clearance, with fines up to 10% of worldwide turnover for violations. The Commission would scrutinize the combination of Starlink and Tesla, especially as the EU invests €15.6B in its own satellite constellation. Additional regulatory challenges may arise from US and Chinese authorities, particularly regarding Tesla's Chinese operations. ## Corporate responses SpaceX President Gwynne Shotwell offered noncommittal responses to acquisition questions at the same summit. Musk dismissed reports about selling Tesla's China business as 'absurdly fake news'. The companies' leadership appears divided on expansion strategies, with Musk's comments suggesting more openness to consolidation than other executives. ## Market implications A Tesla-SpaceX merger would create a vertically integrated technology and transportation conglomerate. The combination could streamline supply chains like Terafab while raising antitrust concerns. SpaceX's public listing provides acquisition currency, but regulatory approvals would likely require significant concessions, particularly in the EU satellite internet market where Starlink competes with government-backed initiatives. ## Historical context SpaceX absorbed xAI in February 2024 before its June IPO, demonstrating Musk's willingness to consolidate his ventures. The $16.8B Terafab facility represents existing collaboration, supplying both automotive and aerospace needs. Previous mega-mergers like Saudi Aramco's $29.4B IPO show market capacity for such deals, though regulatory landscapes have since tightened. ## Strategic considerations Musk's comments reveal strategic thinking about his companies' synergies, particularly in computing and manufacturing. However, regulatory hurdles in multiple jurisdictions make execution complex. The EU's strict merger control, combined with geopolitical factors affecting Tesla's China operations, would require careful navigation. While financially feasible, the political and regulatory challenges may outweigh potential operational benefits. ## Sources covering this story - https://thenextweb.com/news/tesla-spacex-merger-eu-clearance — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._