Elon Musk’s potential merger of Tesla and SpaceX could face significant regulatory hurdles in the United States and China over national security, sensitive data and technology sharing, Reuters reported. The proposed combination would bring Tesla’s extensive Chinese operations under the same corporate umbrella as SpaceX’s defence business.
Musk said on Tuesday that the two companies had established special committees to discuss a possible merger, Reuters reported. However, turning the proposal into reality could prove challenging because of Tesla’s dependence on China for manufacturing and SpaceX’s growing role in sensitive US government and defence contracts.
