xAI Loses Two Co-Founders in Two Days
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 11 2026
0mins
Should l Buy TSLA?
Source: seekingalpha
- Co-Founder Departures: Prominent AI researcher Jimmy Ba announced his resignation from xAI on Tuesday, expressing gratitude to Elon Musk for the opportunity to co-found the company.
- Internal Tensions: Ba's exit follows the departure of fellow co-founder Tony Wu, highlighting internal tensions within the technical team over demands to enhance AI model performance.
- Merger with SpaceX: xAI merged with Musk's aerospace company SpaceX earlier this month, yet the frequent executive turnover may impact the company's stability and strategic direction.
- Increased Competitive Pressure: Musk faces mounting pressure from rivals like OpenAI and Anthropic to accelerate improvements in AI model performance, but internal turmoil could hinder achieving these objectives.
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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: 381.260
Low
25.28
Averages
401.93
High
600.00
Current: 381.260
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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- Tesla's Indirect Investment: Tesla has received government approval to convert its investment in Musk's xAI into a small stake in SpaceX, meaning Tesla shareholders will benefit indirectly from SpaceX's growth, with its value set to be publicly reflected in Tesla's assets post-IPO.
- Retail Investor Opportunities: SpaceX plans to allocate up to 30% of shares to retail investors, tripling the typical IPO norm, allowing Tesla's loyal retail investor base direct access from day one, enhancing their investment opportunities.
- Potential Merger Outlook: Wedbush analyst Dan Ives predicts a possible merger between Tesla and SpaceX as early as 2027, referring to this combination as the “holy grail” that could connect both disruptive tech companies within a single AI-driven ecosystem, showcasing significant strategic potential.
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- Market Impact Analysis: While SpaceX's IPO valuation is projected at $1.75 trillion, the actual shares available for public purchase will be significantly lower compared to Saudi Aramco's $25.6 billion IPO in 2019, potentially affecting investor expectations.
- IPO Process Overview: The IPO will involve months of planning, starting with the confidential submission of an initial prospectus to the SEC, a process expected to take about three months before entering the “Roadshow” phase to disclose financials.
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- Merger Impact: The acquisition of xAI for $1.25 trillion enhances SpaceX's market position, and the anticipated IPO is likely to attract significant investor interest, particularly from Musk's supporters and Tesla shareholders, providing a new investment avenue.
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- Complex Listing Process: The IPO process for SpaceX involves submitting a preliminary prospectus to the SEC, which may take about three months, followed by a “Roadshow” that will provide investors with the first real insight into the company's financials, ensuring a smooth IPO execution.
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- Leasing Market Risks: A wave of off-lease EVs is expected to return with values approximately $10,000 lower than projected, potentially costing the finance arms up to $8 billion, which could significantly impact overall industry profitability.
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