SpaceX announced today that it has acquired xAI, Elon Musk’s AI company, in a deal that creates a combined entity reportedly valued at $1.25 trillion ahead of a planned IPO. The acquisition notably does not include Tesla,

Elon Musk has once again fueled merger speculation after reports said SpaceX is exploring a potential tie-up involving xAI and Tesla Inc. (NASDAQ:TSLA) as it prepares for what could be one of the largest IPOs in history.

Even with the more recent turbulence, shares of Tesla (NASDAQ:TSLA) have been making up for lost time in the past six months, up close to 40%. Thank the robotaxi opportunity and the rise of the Optimus humanoid robot,

In Tesla's annual financial filing, the company said that last year it sold $430 million worth of its energy storage products to xAI, Elon Musk's AI startup.

Tesla earnings beat Wall Street's estimates. The stock rose in after hours trading. A call with analysts is scheduled for 5:30 p.m. ET.

B xAI deal done, Model S/X axed, energy soars to $3.84B record, capex doubles to $20B+ as first revenue drop hits.

Tesla has pledged a $2 billion investment in Elon Musk’s AI startup, xAI, emphasizing its push towards autonomy and robotics. Investors are keenly watching Tesla’s self-driving and robotaxi developments,