Tesla Gains SpaceX Ownership After Converting $2B xAI Investment Tesla has received regulatory approval to convert its investment in Elon Musks artificial intelligence company xAI into a small ownership stake in SpaceX, according to newly released filings with the U.S. Federal Trade Commission (FTC). The move formalizes Teslas financial connection to the aerospace company ahead of a potential SpaceX initial public offering.According to the filings with the FTC dated March 11 and reported by Bloomberg, Tesla has been cleared to acquire a small ownership position in SpaceX from Musk himself. The move effectively rolls Teslas previously announced $2 billion investment in xAI into SpaceX, further tightening the financial links between Musks ventures.

While the exact size of Teslas stake was not disclosed, reports indicate it will represent less than 1% ownership in SpaceX. Regulatory filings of this type are required for transactions valued above $133.9 million, which explains why the deal was subject to federal review even though details remain limited.

The transaction comes at a pivotal time for SpaceX, which is widely expected to pursue a public listing in the future. Bloomberg has previously suggested the rocket company could target a valuation of around $1.25 trillion in a potential IPO, which would make it one of the most valuable companies ever to go public.Teslas Investment Traces Back to xAI

Teslas path to becoming a SpaceX shareholder began with its investment in xAI, Musks artificial intelligence startup. Tesla invested $2 billion into the company earlier this year, making the automaker a minority owner in the rapidly growing AI venture.

However, the corporate structure changed significantly in February when SpaceX confirmed it had merged with xAI, bringing the two companies together under a new organizational structure.In a statement at the time, Musk described the merger as the creation of a vertically-integrated innovation engine, combining SpaceXs space infrastructure and satellite networks with xAIs artificial intelligence technology.

Business filings later confirmed that X.AI Holdings Corp. was dissolved and folded into a new entity, with the surviving organization ultimately renamed XAI Holdings LLC.

Strengthening Ties Across Musks Companies

With the merger complete, Teslas original investment in xAI effectively translated into indirect exposure to SpaceX. The newly approved conversion formalizes that relationship by giving Tesla a direct equity stake in the space company.

The FTC filings also show Musk selling portions of his holdings to other investors, including venture capital firms Valor Equity Partners and DFJ Growth.For Tesla, the stake could provide exposure to one of the most valuable private companies in the world as SpaceX continues expanding its launch business and Starlink satellite network.

Whether this investment represents a long-term financial strategy or an early step toward deeper integration between Musks companies remains unclear. However, with SpaceX potentially preparing for a historic IPO, Tesla now has a seatalbeit a small oneat the table.