By Sophie Lindqvist

Texas Attorney General-elect Nathan Johnson, taking office in January, vows scrutiny of a SpaceX-Tesla combination and Elon Musk's ties to the state. "Any merger of companies of that consequence warrants tremendous scrutiny," Johnson said, according to Bloomberg. He declined to specify a process or legal standard, leaving the review's scope undefined.

SpaceX and Tesla are advancing merger negotiations, with an announcement possible as soon as December. Bloomberg also reported that early 2027 remains under discussion; neither company confirmed a deal or responded to requests for comment.

That timetable carries unusual weight because Bloomberg describes the combination as the biggest merger ever. The combined company would span carmaking, battery storage for energy, rocket and satellite operations, concentrating three separate businesses under common ownership.

• Reported announcement window: as soon as December; early 2027 also under discussion.
• SpaceX valuation: over $1.9 trillion.
• Tesla valuation: roughly $1.5 trillion.
• Combined operations: vehicles, energy-storage batteries, rockets and satellites.

The valuations help explain Johnson's view that the merger requires scrutiny beyond ordinary transaction mechanics. Yet Bloomberg's report identifies no financing structure, governance arrangement or regulatory timetable. It also provides no evidence that a formal review has begun; possible does not mean agreed or approved.

Johnson's concerns extend beyond merger competition to the intersection of Musk's businesses and political leverage. He said Musk has received deference because of his alignment with the Republican Party and the money he spent supporting it. Neither SpaceX nor Tesla responded to that allegation, so the claim remains untested in the available reporting.

His stated concern was concentrated public power. "I don't want anybody to have such control of the public sector that they can bend public power to their private gain," Johnson said. He called Musk's empire "at great risk" of crossing that line and said he had no qualms about examining Musk's relationships with the state.

Bloomberg's report presents no finding of misconduct and identifies no specific state action that Johnson considers improper. Johnson said neither he nor his transition team had contacted Musk. He nevertheless left communication open, saying Musk could contact him for a discussion.

Three incoming Texas officeholders have pledged to rein in Musk's influence: Johnson, Gov.-elect Gina Hinojosa and Sen.-elect James Talarico. Hinojosa defeated Gov. Greg Abbott in the governor's race. Democrats won majorities in both chambers and will control Congress from January, where they have promised investigations into Musk's business and political dealings, although Bloomberg identified no committee or timetable.

Tesla and SpaceX shares extended a selloff last week after Democrats won congressional majorities and key Texas offices. The timing establishes sequence, not causation, and the report supplies no trading figures to test the reaction. Musk's election spending totaled at least $474 million, including $224 million in Texas, where Republican Senate nominee Ken Paxton and Abbott also lost.

The spending figures sharpen Johnson's stated concern, but they do not establish that political support affected regulatory decisions. He said he would focus on consumer protection and antitrust litigation (government action against anti-competitive conduct), yet offered no merger-specific legal theory.

What changes for investors?

The immediate change for investors is greater political and regulatory uncertainty, not a defined legal outcome. A deal could be announced as soon as December or in early 2027, and any announcement would carry explicit scrutiny from an incoming Texas attorney general. For customers, no price, service or product change has been specified; the merger terms remain undisclosed.

SpaceX and Tesla have moved discussions forward, but neither confirmed a deal or commented. Until an agreement and Johnson's legal route become clear, the central fact remains narrow: negotiations are advancing, while both the transaction and the terms of scrutiny remain unsettled.