Tesla is authorized to convert its investment in xAI into equity in SpaceX.

The U.S. Federal Trade Commission (FTC) filing shows that the U.S. government allows Tesla’s investment in xAI to be converted into a small stake in SpaceX. This move formalizes the financial link between Elon Musk’s two core businesses, coinciding with the critical window for SpaceX’s preparations for an IPO. On March 12th, Eastern Time, media reports citing sources said that this equity conversion is directly related to Tesla’s previously announced approximately $2 billion investment in xAI, corresponding to less than 1% ownership in SpaceX.

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