CEO Elon Musk is reportedly floating a potential merger between Tesla and SpaceX. The deal would combine the electric vehicle giant with the aerospace leader into a single entity.
Tesla shares performed strongly in pre-market trading on May 27. Positive European car registration data from April also supported the stock's performance.
The prospect is drawing scrutiny based on Musk’s history of multi-billion dollar deals between his companies. Past transactions include Tesla’s SolarCity acquisition and deals involving X and xAI.
Shareholders have previously filed lawsuits alleging these deals served as bailouts. Critics raise concerns over corporate governance and whether the merger primarily serves Musk’s interests.