Elon Musk confirmed that he believed a potential merger between SpaceX and Tesla would be beneficial, after both companies formed special committees to explore a transaction. The discussions overshadowed Tesla’s earnings, which showed declining automotive revenue and an even steeper drop in its energy business. Tesla shares fell 3% on Thursday and are down 17% for the year, while SpaceX shares plunged 9%. With a market capitalization close to $2 trillion, SpaceX would be the acquirer in a stock swap, but the merger would also require the approval of at least 50% of all Tesla shareholders. Experts said antitrust scrutiny, national security concerns and regulatory reviews in China and the United States could make the transaction particularly challenging.
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