As Tesla converted the equity it had invested in the artificial intelligence (AI) company xAI into SpaceX equity, analysts say a restructuring of the governance among Elon Musk's major corporations is underway. The move is seen as an effort to streamline the business structure ahead of SpaceX's initial public offering (IPO).
On the 12th (local time), Bloomberg said Tesla carried out a transaction to convert its xAI investment equity into SpaceX equity after receiving approval from the U.S. Federal Trade Commission (FTC).
Documents filed with the FTC show Tesla acquired a portion of SpaceX equity from Musk. The same filing also said Musk sold SpaceX equity to investors including Valor Equity Partners and DFJ Growth. However, the specific equity size and transaction amount were not disclosed.
The transaction is said to be related to Tesla's investment in xAI. Tesla had earlier agreed to invest about $2 billion in xAI, but after xAI merged with SpaceX, the investment was structured to convert into SpaceX equity.
Based on this, the industry expects Tesla's SpaceX equity holding to be under 1%.
The equity conversion is interpreted as part of a trend to reorganize Musk's major business structure ahead of SpaceX's IPO scheduled for this year.
Musk acquired the social media platform Twitter in 2022, renamed it "X," and then completed a transaction of about $33 billion to merge it with xAI. Then in Feb. this year, he announced a structure combining SpaceX and xAI, presenting an integrated structure valued at about $1.25 trillion.