Texas AG-elect Nathan Johnson Vows Scrutiny of Tesla-SpaceX Merger

Texas Attorney General-elect Nathan Johnson announced he will subject a potential merger between Tesla Inc. and Space Exploration Technologies Corp. to "tremendous scrutiny." Speaking in Dallas on November 12, Johnson warned that the tie-up between the two Elon Musk-led companies could allow private individuals to bend public power for private gain.

The proposed merger would combine electric vehicles, energy storage, rockets, and satellites into a single entity. Johnson, a Democrat entering office in January, suggested that Musk previously received undue deference because of his financial support for the Republican Party. He stated he has no qualms about examining Musk's relationships to the state to ensure the corporate empire does not cross ethical lines.

Johnson's approach signals a shift in the Texas Attorney General's office. He intends to prioritize antitrust litigation and consumer protection over the culture-war lawsuits favored by outgoing Attorney General Ken Paxton. Johnson is part of a new state leadership cohort that includes Governor-elect Gina Hinojosa and US Senator-elect James Talarico.