Elon Musk is in advanced talks to merge his AI firm xAI into SpaceX. The move, possibly announced this week, would support in-orbit data centers and AI competition.
Under the proposal, xAI shareholders would exchange their shares for SpaceX stock. Two Nevada entities have been formed to facilitate the transaction.
SpaceX has discussed a potential IPO that could value it near $1.5 trillion. Company leaders have also explored a possible tie-up with Tesla.
Investors often move between Musk-led firms, but Tesla shares fell about 3% after the report. Tesla is down nearly 4% over the past month and trades around $420.
Investors seek a clear catalyst for Tesla in 2026 as growth remains central. Piper Sandler targets $500, Wedbush $600 and Truist Securities $439.
