Tesla Converts xAI Investment into SpaceX Stake
- Tesla has obtained regulatory approval to convert its investment in Elon Musk’s AI firm, xAI, into a stake in SpaceX.
- The transaction formalizes financial ties between Tesla and SpaceX ahead of the rocket maker’s planned IPO.
- Filings with the US Federal Trade Commission list Tesla as acquiring a SpaceX stake from Musk.
- Musk also sold additional holdings to investors like Valor Equity Partners and DFJ Growth.
- The conversion results from Tesla’s $2 billion investment in xAI, now merged with SpaceX, leaving Tesla with less than a 1% stake in the company.
Tesla has secured regulatory clearance to transform its $2 billion investment in xAI into a small stake in SpaceX, strengthening ties between Elon Musk’s companies before SpaceX’s planned IPO. This move leaves Tesla with under 1% ownership of the combined entity valued at approximately $1.75 trillion.
Source (3.2)https://cryptobriefing.com/tesla-spacex-stake-pre-ipo/?rand=59535
