Texas governor-elect attorney general Nathan Johnson says any potential SpaceX-Tesla merger would require strict review
Texas attorney general-elect Nathan Johnson said he would strictly review any potential merger between Elon Musk’s SpaceX and Tesla. In an interview with Bloomberg, he said that any merger of companies of that magnitude warrants extremely strict scrutiny, and he warned of the dangers of excessive corporate concentration. The interview took place on Thursday local time at Bloomberg’s Dallas office, nine days after he and Democrats won in the midterm elections.
Johnson noted that world’s richest person Musk has concentrated a large part of his business empire in Texas. He spent hundreds of millions of dollars in the midterm elections supporting Republicans in Texas and across the United States. Johnson said, I think that because he aligned himself with Republicans and invested heavily, he has received tremendous favor, and I have no hesitation about reviewing his relationship with the state. SpaceX and Tesla did not immediately respond to requests for comment. Johnson said his transition team has not yet been in touch with Musk, but if Elon wants to talk, we can talk.
Original source:
Title: Texas’ Next AG Vows ‘Tremendous Scrutiny’ of Tesla-SpaceX Deal
Publisher: Bloomberg
Publication date: 2026-11-13
URL: bloomberg.com/news/articles/2026-11-13/texas-next-ag-vows-tremendous-scrutiny-of-tesla-spacex-deal
Source nature: Bloomberg report (including an interview with Johnson)
Verification status: The core content and quotations were visible on the page actually read for this story; multiple English-language media outlets reported consistent versions
Supported content: Johnson vowed to subject any potential SpaceX-Tesla merger to strict scrutiny; the quote Any merger of companies of that consequence warrants tremendous scrutiny; warned of the risks of corporate concentration; Musk has concentrated his businesses in Texas and supported Republicans; Johnson said he would review his relationship with the state; the companies did not immediately respond; the transition team has not contacted Musk
ABAB AI Insight
Johnson’s remarks came after Democrats won the Texas attorney general, governor and U.S. Senate seats in the November 3, 2026 midterm elections. He will take office in January 2027, replacing Republican Ken Paxton. Previously, Musk moved Tesla’s headquarters to Austin, placed much of SpaceX’s main business around Starbase in Texas, and invested heavily in the elections to support Republican candidates. Johnson explicitly linked the concentration of the companies with Musk’s political ties to Republicans, and said he was willing to review Musk’s relationship with the state.
The potential merger of SpaceX and Tesla is currently still in the discussion stage. Bloomberg previously reported that talks were advancing and that, if completed, the deal would involve the electric vehicle, energy storage, rocket and satellite businesses, potentially making it one of the largest transactions in history. Johnson did not discuss specific terms this time and did not initiate a formal review process; his remarks were a preemptive statement on a potential deal, rather than an enforcement action already launched. SpaceX and Tesla did not comment on the reports.
The Texas attorney general’s office has state-level enforcement authority in antitrust and consumer protection. Johnson said he would refocus the office on these nuts and bolts matters. Any merger would still need to go through company boards, shareholders and possible federal antitrust review; a state attorney general’s stance can be an additional regulatory consideration, but it does not itself mean the deal has been blocked or that an investigation has already been opened. Indicators to watch for further developments include whether the companies formally announce a merger agreement, the conclusion of any special board committee, whether Johnson launches a specific investigation after taking office, and whether the two sides engage on state-level regulatory issues.
ABAB News · Cognitive Law
An incoming official may state a review position in advance on a potential deal that has not yet been formally announced.
Political donations and business location can be treated by a new enforcement official as relevant factors in reviewing the relationship.
A state-level statement and federal and internal company procedures belong to different stages and do not automatically mean the deal is blocked.