Elon Musk's political baggage clouds potential SpaceX-Tesla merger

Elon Musk confirmed that boards are reviewing a potential merger between SpaceX and Tesla that could create a $3.5 trillion company.

Analysts noted the deal would unite a major U.S. defense contractor with a China-exposed manufacturer, raising national security scrutiny in Washington and Beijing.

Democratic lawmakers and future administrations could subject the merged entity to congressional investigations and push for the deal to be unwound.