Here is the part of the SpaceX IPO story most coverage glossed over: Tesla (NASDAQ:TSLA) wrote a $2 billion check to xAI in January 2026, and weeks later that check effectively cleared into SpaceX.
The $2 billion that quietly changed addresses According to the SpaceX S-1, in January 2026, Tesla entered into an agreement with xAI to invest $2,000 million via a purchase of xAI Series E Redeemable Convertible Preferred Stock, conditioned on regulatory approvals
Then on February 2, 2026, SpaceX completed the xAI Merger, with xAI becoming a wholly-owned subsidiary. That single event rerouted Tesla’s AI stake. The filing is explicit: “Following the xAI Merger, Tesla’s right to acquire Series E Redeemable Convertible Preferred Stock of xAI was converted into the right to acquire SpaceX Class A common stock.
On March 12, 2026, following expiration of the applicable regulatory waiting period, SpaceX issued 3.8 million shares of Class A Common Stock (on a pre-2026 Stock Split basis) to Tesla.” As of May 1, 2026, Tesla is the beneficial owner of 18,990,195 shares of SpaceX Class A common stock, representing less than 1.0% of the total outstanding. Tesla’s AI capital exposure now sits on SpaceX’s cap table rather than inside xAI as a standalone bet. Terafab: the fab partnership investors should watch The S-1 reveals where this heads.