Musk Rebuilds xAI Ties with Tesla Amid SpaceX IPO Plans
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 13 2026
0mins
Should l Buy TSLA?
Source: stocktwits
- Investment Shift: Tesla received U.S. government clearance to convert its $2 billion investment in xAI into a small stake in SpaceX, representing less than 1% ownership, highlighting Musk's financial maneuvering and integration across his ventures.
- Rebuilding Process: Musk stated that xAI is being rebuilt “from the foundations up,” paralleling Tesla's early struggles, indicating a deep reflection and strategic adjustment that could impact investor confidence in Tesla.
- IPO Expectations: As SpaceX prepares for a potential IPO, which could be one of the largest in history, Musk's business empire is undergoing a reshaping, further strengthening the financial ties between Tesla and SpaceX.
- Market Reaction: Tesla's stock declined over 3% on Thursday, snapping a three-day winning streak, reflecting cautious market sentiment towards Musk's diversified investment strategy, with the stock down 12% year-to-date.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 378.670
Low
25.28
Averages
401.93
High
600.00
Current: 378.670
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strategic Shift: Tesla is pivoting towards higher-margin businesses such as Robotaxis, humanoid robots, and AI, which could drive future profitability, even as its traditional car sales face challenges like declining market share and rising inventory levels.
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See More
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- Revenue Target Missed: OpenAI did not achieve its annual revenue target for its flagship product ChatGPT, despite CFO Sarah Friar stating that annualized revenue surpassed $20 billion in 2025, up from approximately $6 billion in 2024, highlighting pressure on revenue growth.
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See More
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- Strong Quarterly Performance: Tesla delivered solid quarterly results in Q1 2026, indicating robust fundamentals despite a muted stock price reaction, which may attract long-term investor interest.
- Market Reaction Analysis: Although the stock price did not reflect the positive performance on the afternoon of April 26, 2026, the strong delivery data could potentially drive a rebound in stock prices in the future.
- Investor Confidence: The quarterly delivery figures reinforce Tesla's leadership position in the electric vehicle market, likely boosting investor confidence in the company's future growth prospects.
- Strategic Outlook: The ongoing delivery growth sets a foundation for future expansion and market share increase, particularly against the backdrop of rising global demand for electric vehicles.
See More
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- FSD User Growth: Tesla reported approximately 1.3 million paid FSD customers globally, indicating a steady increase in user adoption, although the technology still requires active driver supervision, which is crucial for future market expansion.
- Marketing Strategy Reflection: Gary Black urged Tesla to prioritize its communication strategy, arguing that relying solely on word-of-mouth is insufficient to enhance FSD's market acceptance, and recommended that the company invest heavily in marketing its FSD technology to improve consumer awareness and adoption rates.
- European Market Expansion: Tesla received approval for FSD in the Netherlands earlier this month, becoming the first European country to do so, and is now seeking EU-wide approval as well as approval in China, which will lay the groundwork for further international market expansion.
- Retail Sentiment Analysis: Over the past 24 hours, retail sentiment around TSLA stock on Stocktwits remained in the 'extremely bullish' territory, with message volume staying high, reflecting investor optimism about Tesla's future performance, as the stock has gained 32% over the past 12 months.
See More
