MERGER NEWS 📰 According to a former Justice Department official, a potential merger of $TSLA and $SPCX could face antitrust scrutiny in the US, even though regulators generally view these types of “vertical” mergers favorably because they can improve supply chain efficiency and strengthen competition 😱
The biggest concern would be something known as “vertical foreclosure,” where a company uses its control over one part of a supply chain to shut out competitors elsewhere 😱
For example, if technologies like SpaceX’s Starlink were made available exclusively to Tesla vehicles, other EV manufacturers and autonomous driving companies could find themselves at a competitive disadvantage.
That could give antitrust regulators grounds to challenge or even block the merger, depending on how the deal is structured.
Politics could also play a major role.
The question is whether antitrust regulators under President Trump would be willing to take on Elon, one of the Republican Party’s biggest donors.
And if Democrats regain control of the House in next month’s midterm elections, Elon could face additional scrutiny from Congress, with lawmakers likely to examine any effort to bring his companies together.