Independent directors at Tesla and SpaceX have formed special committees to explore combining the two companies in a deal that would create a roughly $3.5 trillion giant at current market values. Elon Musk, who cannot participate in the talks due to his conflict of interest, became the world’s first paper trillionaire following SpaceX’s June IPO, controlling about 45% of the company but 82% of its voting power through multi-class shares. SpaceX’s governance structure, which used the “controlled company” exemption to skip majority-independent board requirements, was described by institutional investors as “the most management-favorable governance structure ever brought to U.S. markets at this scale.” SpaceX also conducted $573 million in transactions with Musk-controlled companies in fiscal 2025, including $430 million in Megapack battery sales to xAI and $143 million in Cybertruck sales to SpaceX. The Starbase site in Texas recorded an injury rate of 4.27 per 100 workers in 2024, nearly six times the industry average, and a worker died there on May 15, prompting an OSHA investigation.
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