Former DOJ Official Warns Tesla-SpaceX Merger Could Draw Antitrust Challenge Over Starlink Access
TSLA sits 25% above its 52-week low of $297.38.
Summary
A former Justice Department official told Semafor that regulators could treat a Tesla-SpaceX combination as a problematic vertical merger, challenging it on 'vertical foreclosure' grounds if Tesla gets exclusive access to SpaceX technology like Starlink while rival EV and self-driving carmakers are shut out. The warning follows Musk's confirmation on SpaceX's earnings call that both companies have formed special committees to explore a merger — a deal he backs but says needs approval from 50% of all Tesla shares, a high bar. Political risk is stacking on top: Sen. Cory Booker told Reuters antitrust agencies worldwide would examine the deal and flagged national security concerns over one person controlling infrastructure governments and militaries rely on, while Reuters noted Tesla's China operations and SpaceX's Pentagon ties could draw global scrutiny. No deal terms exist yet and no transaction is guaranteed. Tesla shares are down 17.6% year-to-date, and this adds regulatory and political overhang to a stock already digesting a 56% YoY drop in Q3 operating income to $718M.
At the time of this announcement, TSLA was trading at $372.40 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $1.5T. The 52-week trading range was $297.38 to $498.83. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.