Tesla has cleared a regulatory hurdle, converting its investment in Elon Musk's AI firm xAI into a stake in SpaceX. This move formalizes financial connections between Musk's companies ahead of SpaceX's anticipated initial public offering.
US Federal Trade Commission filings confirm Tesla as the acquirer of a SpaceX stake from Musk. These documents also indicate Musk sold additional holdings to investors, including Valor Equity Partners and DFJ Growth.
The filings stem from Tesla's $2 billion investment in xAI, which recently merged with SpaceX. This conversion will result in Tesla holding less than one percent of SpaceX.
Earlier, Musk acquired Twitter, now X, merging it with xAI. This strategic step facilitated the SpaceX integration, creating a combined entity valued at approximately $1.75 trillion when announced this year.