Tesla has received regulatory approval to convert Elon Musk’s investment in artificial intelligence company xAI into a small stake in SpaceX, formalizing a financial relationship between the billionaire’s companies ahead of the rocket maker’s planned initial public offering, Bloomberg reports.
Tesla is listed as the acquirer of SpaceX stock from Mr. Musk in a filing with the Federal Trade Commission. The document, dated March 11, also shows Musk selling additional holdings to investors including Valor Equity Partners and DFJ Growth.
The filing relates to Tesla’s previously disclosed $2 billion investment in xAI, which was recently folded into SpaceX after the AI and rocket company merged. The conversion will reduce Tesla’s ownership in SpaceX to less than 1%.
Musk previously acquired Twitter in 2022 and later integrated the platform, now called X, with xAI in a $33 billion deal. The move paved the way for the SpaceX partnership, creating a combined entity worth about $1.75 trillion when the deal was announced earlier this year.
Disclosure: This article was edited by Estefano Gómez. Please see our Editorial Policy for more information on how we create and review content.
