On October 23, US financial media outlet Semafor reported that Elon Musk suggested this week that Tesla (TSLA.O) should merge with SpaceX (SPCX.O). A former official from the Department of Justice highlighted that such a merger could potentially trigger antitrust concerns. The official explained that while antitrust regulators typically view 'vertical' mergers as beneficial for enhancing supply chain efficiency and fostering competition, a different scenario could unfold if the Tesla-SpaceX merger is classified as a 'vertical exclusionary' merger. In such cases, a company might leverage its dominant position to stifle competition at other supply chain levels, prompting regulatory intervention to prevent the merger.

For instance, if, in the future, only Tesla vehicles were permitted to utilize SpaceX's Starlink technology, it could have a detrimental impact on other manufacturers in the autonomous driving or electric vehicle sectors. However, the actual outcome would hinge on the specific terms of the proposed deal. Moreover, there is uncertainty regarding whether US antitrust enforcement agencies, which are currently aligned with Trump's policies, would be willing to challenge Musk, a prominent Republican donor. Should the Democrats regain control of the House of Representatives next month, Musk might find himself subject to congressional investigations, with any plans to merge his companies coming under intense scrutiny.