Image: SpaceX
Tesla has officially received government clearance to convert its $2 billion investment in xAI into a minority equity stake in SpaceX.
The move, revealed in filings with the U.S. Federal Trade Commission (FTC) dated March 11, 2026, formalizes deeper financial ties between Elon Musk’s companies just ahead of a highly anticipated SpaceX initial public offering, reports Bloomberg.
The transition follows the recent merger between SpaceX and xAI, which combined Musk’s space-launch capabilities with his artificial intelligence startup. As a result of this restructuring, Tesla’s previous investment in xAI has been rolled over into SpaceX. While the specific size of the holding was not disclosed, analysts estimate that Tesla’s resulting stake in the rocket manufacturer amounts to less than 1%.
A Multi-Trillion Dollar Empire
This equity conversion is part of a broader effort by Musk to integrate his various technology ventures. In early February 2026, SpaceX acquired xAI in a deal that created a combined entity valued at approximately $1.25 trillion. The merger aims to leverage SpaceX’s Starlink satellite network and launch power to support xAI’s massive computing needs. This includes ambitious plans for solar-powered orbital data centers.
For Tesla shareholders, this move provides indirect exposure to SpaceX, which is reportedly preparing for a massive public listing as early as mid-2026. If the IPO proceeds at its rumored $1.5 trillion valuation, it could become the largest in history. However, the move has not been without controversy; some investors have raised concerns over potential conflicts of interest as Tesla’s capital is shifted into Musk’s private, multi-industry network.
Despite these questions, the FTC’s approval signifies that the deal has cleared a major regulatory hurdle. Tesla investors now own a small stake in SpaceX.
