Tesla shares climbed in extended trading on Thursday following multiple reports that SpaceX is considering a potential tie-up with the EV maker and xAI. According to Bloomberg and Reuters, discussions are in preliminary stages but reflect investor interest in consolidating Elon Musk’s portfolio ahead of SpaceX’s planned IPO in June, when it is expected to seek a valuation near $1.5 trillion. The news drove Tesla up more than 3 percent in after-hours activity, with technical indicators showing the stock trading below its 20-day and 100-day moving averages, a neutral RSI reading around 44, and bearish MACD positioning. Key resistance is seen near the $500 level, while support rests around the mid-$420s.

In its fourth-quarter report, Tesla posted net income down by 37 percent year-over-year to $1.37 billion, driven by compressed automotive margins of just over 5 percent. Despite the decline, investors held firm on the promise of the company’s forthcoming robotaxi fleet and Full Self-Driving software rollout, valuing Tesla at nearly 300 times trailing earnings. Management reiterated plans to allocate capital toward software development and next-generation robotics, arguing that future high-margin service revenues will render current automotive economics secondary. The strong narrative around autonomous mobility continues to underpin the stock’s elevated valuation multiples.