What is the SpaceX xAI merger and why does it matter to Tesla?

xAI is being combined into SpaceX, concentrating AI efforts under Musk. For Tesla, it can mean closer access to model training, potential compute sharing, and a stronger narrative around AI. It also raises correlation risk across ventures, so execution and regulatory outcomes could swing sentiment quickly.

Could an xAI IPO benefit TSLA holders?

CNBC reported chatter around a potential US$1.25 trillion IPO for SpaceX after combining with xAI. If public markets embrace the story, it could support risk appetite for Musk-linked AI assets. That may help Tesla’s multiple, though it depends on timelines, disclosure quality, and broader market conditions.

How might space data centers lower AI costs?

Orbital, solar-powered data centers could harness abundant energy and improve cooling efficiency. If latency, maintenance, and radiation issues are addressed, compute costs could fall. Lower costs would help AI training and inference economics across products. The idea is early, so investor expectations should factor in long development cycles.

What are key risks for Tesla’s AI strategy now?

Execution risk on autonomy milestones, regulatory reviews, and access to affordable compute are central. Valuation is rich, which increases downside sensitivity to delays. The merger concentrates AI infrastructure across Musk ventures, so setbacks at SpaceX or xAI could ripple through Tesla’s narrative and short-term price action.

Global Market Insights

TSLA Stock Today: SpaceX-xAI Tie-Up, IPO Plans Buzz – February 02

ByHuzaifa Zahoor February 3, 2026February 3, 2026

The SpaceX xAI merger is in focus for Canadians watching Tesla. Shares of TSLA traded at US$421.81, down 2.0% on the day, as investors weighed a plan to fold xAI into SpaceX and talk of a potential US$1.25 trillion IPO. The vision includes orbital, solar-powered data centers to cut AI compute costs. We break down how this could shape Tesla’s AI strategy, risk profile, and access to capital, plus what Canada-based investors should watch now.