Tesla shares close at $397.45 amid looming scrutiny of Starlink grants
Key Facts
Tesla shares closed at $397.45 on November 12, 2026, according to EL7 data, while there is no reliable confirmation of an incoming Texas attorney general's pledge to scrutinize a potential merger with SpaceX. The documented issue linked to the state centers on government broadband grants awarded to Starlink, which Axios reported Nathan Johnson had pledged to audit. The distinction stands out as Tesla considers deepening its relationship with SpaceX, a process for which no assurance of completion has been announced. The company's official disclosures make any potential deal subject to governance steps and shareholder approval. Further developments therefore hinge on the outcome of the special committee's review and the approval process, alongside the government grants issue.
Tesla disclosed in its quarterly report that it had formed a special committee of disinterested directors to consider deepening its relationship with SpaceX, potentially including a merger. The company said there is "no assurance that any such transaction will be completed," leaving a merger as a possibility under consideration rather than a completed agreement. According to Tesla's disclosure, any deal would require an affirmative recommendation from the special committee, as well as shareholder approval if an agreement is reached and such approval is required. That means the committee's deliberations are a key stage before a deal could proceed to a vote. The disclosure did not specify a timeline for completing its review or an expected outcome.
A Bloomberg Law analysis said options under consideration include SpaceX acquiring Tesla in an all-stock deal, or placing the two companies under a new holding company. A Reuters report published via Investing.com said advisers to the two companies had also discussed the possibility of SpaceX acquiring Tesla or combining them under a new holding company, while considering potential all-stock consideration. The legal structure would differ under each option, but both would require settling the companies' valuations, share-exchange ratios, voting rights and control, according to the Bloomberg Law analysis. The official disclosure did not announce a final agreement on a specific structure. The range of options also makes deal terms and the distribution of influence among shareholders part of the corporate discussion.
According to Bloomberg Law, any deal at SpaceX would require approval from its special committee, board and controlling shareholder Elon Musk. At Tesla, the certificate of formation lowers the threshold for merger approval in Texas to a majority of the outstanding shares entitled to vote, the same analysis said. Abstentions or failure to vote effectively count against the deal under this threshold. Texas law allows a company to seek an advance judicial determination that special committee members are independent and have no conflicting interests. These requirements add governance and voting steps to any potential structure, without by themselves establishing that there is a regulatory objection to any particular deal.
On Johnson's interest in companies linked to Musk, Axios reported on November 9 that he had pledged to examine government broadband grants awarded to Starlink. In July, he had called for a broader legislative audit of government grants directed to the Starlink program and pledged to audit the state's dealings with SpaceX if he won office, according to The Guardian. Johnson was elected attorney general and will take office in January, the Associated Press reported. These statements concern grants and government dealings and do not provide evidence of a pledge to scrutinize the Tesla-SpaceX merger itself. In August, Musk's companies received a $30 million government grant to build a semiconductor plant expected to provide 3,000 jobs, according to AP.
SpaceX closed at $139.94 on November 12, 2026, alongside Tesla's close at $397.45, according to EL7 data. The available figures do not include a documented move in either stock during the session or an explanation linking the close to a specific merger development. In early afternoon trading on October 21, SpaceX rose 8% and Tesla 3.5% after the announcement that the two special committees had been formed, according to AP; that move was in an earlier session. The agency valued the two companies together at $3.5 trillion at market prices at the time. In a later report on the Wednesday after the November election, AP said the market value of each of Tesla and SpaceX had fallen by about $40 billion; those figures do not represent the November 12 close.
The next step announced by Tesla remains contingent on a recommendation from the special committee, followed by shareholder approval if a deal is agreed and approval is required. The company gave no assurance in its disclosure that any transaction would be completed, while Bloomberg Law's analysis said approvals from SpaceX's special committee, board and controlling shareholder would also be required. In Texas, Johnson will take office as attorney general in January, according to AP, while the statements attributed to him focus on Starlink grants and government dealings with SpaceX. The available evidence included no announcement of a voting date or final details of the merger terms. If a deal is agreed, its structure, shareholder rights and approval stages will remain factors to watch as the matter develops.