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SpaceX Tesla Merger Faces Political Scrutiny

Elon Musk has revived discussions regarding a potential merger between SpaceX and Tesla to create a giant enterprise. However, analysts warn that the massive deal faces significant political obstacles and national security concerns in both Washington and Beijing.

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FILE PHOTO: US President Donald Trump presents the National Medal of Science to Tesla and SpaceX CEO Elon Musk during the "A New Golden Age" summit at the U.S. Institute of Peace, renamed The Donald J. Trump Institute of Peace by the Trump administration, in Washington, DC, US, October 8, 2026. REUTERS/Evan Vucci/File Photo

A potential $3.5 trillion merger between TESLA INC and SpaceX faces severe political hurdles across the United States and China that threaten to overshadow regulatory reviews.
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