Tesla received clearance from the US government to convert its investment in Elon Musk’s xAI into a small stake in SpaceX, filings with the Federal Trade Commission dated March 11 show, formalizing financial ties ahead of SpaceX’s planned IPO.

xAI, an AI startup founded by Musk, recently merged with SpaceX. Tesla’s previously announced US$2 billion investment in xAI is being rolled into SpaceX, people familiar with the matter said.