Tesla to Convert $2 Billion xAI Stake Into SpaceX Equity

Tesla held a $2 billion stake in Elon Musk’s artificial intelligence company xAI, an investment seen as a key part of efforts to link the automaker’s development of autonomous driving, robotics and generative AI. The conversion into SpaceX equity reflects Musk’s reallocation of resources across his companies and is prompting the market to reassess Tesla’s AI strategy.

As of July 20, 2026, Tesla had received approval to convert its $2 billion xAI stake into SpaceX equity, though the exchange ratio and actual completion date had not been disclosed. Musk also said xAI was “rebuilding from the ground up,” drawing investor attention to whether Tesla will adjust its technology collaboration with and capital investment in xAI.