SpaceX IPO Prospectus Reveals Deep Ties to Musk's Companies, with Tesla Holding Nearly 19 Million SpaceX Shares

May 21: SpaceX’s initial public offering (IPO) prospectus, filed via regulatory Form S-1, lays out sweeping business and equity overlaps across Elon Musk’s portfolio of companies. The 330-page document references “Tesla” 87 times, “xAI” 356 times, and “X” 267 times. On the equity front, Tesla holds roughly 19 million shares of SpaceX’s Class A common stock, representing less than 1% of outstanding shares. Back in February, Musk merged his AI firm xAI into SpaceX, with Tesla’s original xAI holdings converted into SpaceX stock as part of the transaction. Businesswise, SpaceX acquired $131 million worth of Cybertrucks from Tesla at the manufacturer’s suggested retail price (MSRP). Earlier reports noted SpaceX purchased 1,279 Cybertrucks in the fourth quarter of 2025, and the new prospectus hints the actual total may be even higher. Separately, SpaceX spent $697 million on Tesla’s Megapack energy storage batteries in 2024 and 2025 to power peak demand at its Colossus I and II data centers in Memphis, Tennessee. The prospectus also highlights financial strains from the merger: in 2025, SpaceX allocated roughly 60% of its total capital expenditure (about $20 billion) to xAI. Yet xAI’s revenue grew just 22% year-over-year last year, with the AI unit posting billions in losses. In its risk factors section, SpaceX explicitly flags Musk as a key risk, stating the company is “highly dependent on Musk’s continued service” — noting his leadership, vision, and technical expertise are critical to its future success. Additionally, SpaceX acknowledges Musk does not always devote 100% of his attention to the firm, and his multiple businesses could compete in certain areas or cannibalize one another’s operations. Musk faces no restrictions from engaging in activities that might directly compete with SpaceX, creating potential conflicts of interest down the line. Furthermore, Musk’s public statements and actions could have either positive or negative impacts on the company’s operations, customer relationships, regulatory standing, or stock price.