U.S. media: Tesla's merger with SpaceX may face antitrust scrutiny

According to the American financial media Semafor, Musk proposed a merger between Tesla and SpaceX this week. A former Department of Justice official stated that the proposal poses a real risk of antitrust issues.

The official noted that antitrust regulators typically view such vertical mergers as beneficial for improving supply chain efficiency and promoting competition. However, if Tesla and SpaceX are deemed to be potentially engaging in vertical exclusionary mergers, regulators may attempt to block it. The article explains exclusionary as companies using their position to limit competition from other levels of the supply chain, citing that if in the future only Tesla vehicles can use SpaceX's Starlink technology, other autonomous or electric vehicle manufacturers may be harmed.

The report states that the outcome depends on the terms of this currently hypothetical deal, as well as how willing U.S. antitrust enforcement agencies, aligned with Trump's stance, are to clash with Musk, who is described as a major Republican donor. The report also mentions that even so, if the Democrats regain control of the House next month, Musk will face congressional investigations, and lawmakers will closely scrutinize his attempts to merge his companies.