Tesla Receives Clearance to Convert xAI Investment Into SpaceX Stake Ahead of IPO
Tesla Inc. has received regulatory clearance to convert its investment in Elon Musk’s artificial intelligence company xAI into an equity stake in SpaceX, according to filings submitted to the US Federal Trade Commission (FTC) on Wednesday.
The documents indicate that Tesla will acquire a portion of SpaceX shares directly from Elon Musk, who currently serves as the chief executive officer of both companies. The filings also reveal that Musk has sold additional holdings to several investors, including Valor Equity Partners and DFJ Growth.
Under US regulations, filings with the FTC are required when the value of a transaction exceeds $133.9 million. However, the exact size of the stake Tesla will obtain in SpaceX has not been disclosed in the documents.
The filings are tied to Tesla’s previously announced $2 billion investment in xAI. Following the recent merger between the AI company and the space-launch firm SpaceX, that investment is being converted into an equity position in SpaceX, according to a Bloomberg report published on Thursday. Based on current estimates, the converted investment would give Tesla a stake of less than 1% in SpaceX.
This move formally strengthens the financial relationship between Elon Musk’s two largest companies, Tesla and SpaceX. The conversion also comes ahead of SpaceX’s anticipated initial public offering (IPO), which could become one of the most closely watched market events in the technology and aerospace sectors.
