Tesla has received regulatory clearance to convert its investment in Elon Musk’s artificial intelligence firm xAI into a small stake in SpaceX, formalizing financial ties between the billionaire’s companies ahead of the rocket maker’s planned initial public offering, according to a Bloomberg report.
Filings with the US Federal Trade Commission list Tesla as the acquirer of a SpaceX stake from Musk. The documents, dated March 11, also show Musk selling additional holdings to investors, including Valor Equity Partners and DFJ Growth.
The filings relate to Tesla’s previously disclosed $2 billion investment in xAI, which was recently rolled into SpaceX following the merger of the AI firm with the rocket company. The conversion would leave Tesla with a stake of less than 1% in SpaceX.
Musk previously acquired Twitter in 2022 and later merged the platform, now called X, with xAI in a $33 billion deal. That move paved the way for the SpaceX tie-up, creating a combined entity valued at about $1.75 trillion when the transaction was announced earlier this year.
Source: https://cryptobriefing.com/tesla-spacex-stake-pre-ipo/