Elon Musk’s proposal to merge Tesla and SpaceX has drawn warnings from antitrust experts, according to Semafor. A former Justice Department official stated that while vertical mergers are generally viewed as pro-competitive for improving supply chain efficiency, the Tesla-SpaceX deal could face regulatory scrutiny if deemed a "vertical exclusivity" arrangement. The core concern involves potential restrictions on competitors. If the merged entity mandates exclusive use of SpaceX technologies, such as Starlink, by Tesla vehicles, it could disadvantage other autonomous driving or electric vehicle manufacturers. Regulators may seek to block the merger if they determine such exclusivity harms competition at other levels of the supply chain.