Tesla Converts xAI Investment Into SpaceX Stake Ahead of IPO

Tesla Inc. received government clearance to convert its investment in Elon Musk’s xAI into a small stake in SpaceX, formalizing the financial ties between the billionaire’s two biggest businesses ahead of the rocket maker’s planned initial public offering.

Filings with the US Federal Trade Commission list Tesla as the acquirer of a stake in SpaceX from Musk, who is chief executive officer of both companies. The documents, dated March 11, also show Musk selling holdings to investors including Valor Equity Partners and DFJ Growth.

While the filings are required for transactions valued at more than $133.9 million, ...