Tesla Eyes SpaceX Merger after $2B Stake Conversion and Terafab Joint Facility
Tesla converted a $2 billion xAI investment into a sub-1% SpaceX stake and launched a joint Terafab facility, signaling deeper operational ties. Wedbush flags that a full merger could expand Tesla’s ecosystem into space infrastructure but face intense FTC and DOJ scrutiny.
1. Tesla's Stake in SpaceX
Tesla’s $2 billion investment tied to xAI converted into a sub-1% stake in SpaceX earlier this year, giving the electric-vehicle maker a direct ownership position and aligning its interests with the space-launch company.
2. Joint Terafab Facility
The two companies announced a shared Terafab manufacturing site, combining Tesla’s battery and chip expertise with SpaceX’s advanced materials and fabrication capabilities, hinting at integrated production processes.
3. Potential Merger Implications and Regulatory Scrutiny
Wedbush analysts see a merger as the next step to unite AI, energy, manufacturing and space infrastructure under one umbrella, though any deal would face rigorous review by the FTC and DOJ due to antitrust concerns.