CNBC reported on Oct. 23 that Wall Street interest is concentrating on a possible merger between SpaceX and Tesla after Elon Musk publicly backed it.

According to the report, Musk said during SpaceX's third-quarter earnings call on Oct. 21, "If you ask whether a merger is a good idea, it is." The two companies each formed a special committee to review a deal. Musk was more reserved the next day during Tesla's earnings call, saying, "I've said all I need to say."

Attention focused more on the merger issue than on Tesla's results. Tesla's third-quarter automotive revenue fell. Revenue from its energy business fell by more. On Oct. 23, Tesla shares fell 3 percent and SpaceX shares fell 9 percent.

There are also sceptical views. William Blair analysts assessed that Musk is pushing the merger to secure control rather than to strengthen the business. Musk already effectively runs the two companies as if they were one. The analysts said it is hard to find opportunities that could be gained only through a merger.

The two companies have different governance structures. Musk controls close to 80 percent of SpaceX voting rights. His Tesla stake is limited to 19.8 percent. Musk said Tesla requires approval from 50 percent of all shares, not just those that vote, calling it "a pretty high threshold." SpaceX has a market capitalisation close to $2 trillion and Tesla is around $1.5 trillion. If a merger is done through a share swap, SpaceX would be the acquirer.

Eric Talley (에릭 탤리), a Columbia University law professor, added that the companies' robotics and AI businesses overlap, dissatisfaction among shareholders is growing and lawsuits are being filed, and a merger could benefit shareholders on both sides.

Regulation is an obstacle.

Steve Wesley (스티브 웨슬리), a former Tesla director, predicted the companies would try to announce a merger plan before the midterm elections, which are less than two weeks away.

China is also a variable. China accounted for 22 percent of Tesla sales last year. Talley said China's national security authorities would pay particular attention to the deal. Kevin Lee (케빈 리), an analyst at Counterpoint Research, pointed to antitrust review, national security and cross-border regulatory scrutiny as major challenges.