Elon Musk merges SpaceX with xAI, creating a $1.25 trillion entity. Musk owns a 43% stake in SpaceX, shifting focus from Tesla. xAI’s acquisition of X forms the “Muskonomy.” SpaceX aims to build data centers in space, filing with the FCC to launch satellites. Challenges include radiation shielding and cost.

Tesla sees first revenue decline, with automotive revenue dropping 10%. Model S and X production ends to focus on Optimus robots. SpaceX plans an IPO valued at $1.5 trillion, targeting $50 billion in funding. IPO proceeds will fund Starship flights, AI data centers, Moonbase Alpha, and Mars missions.

SpaceX leads in orbital launch services with Starlink internet. Analysts are divided on Tesla stock, with a $402.74 average price target. Musk’s pay package offers 12 tranches of shares for hitting milestones, starting at a $2 trillion market cap. SpaceX’s success strengthens the Musk ecosystem, but Tesla’s future remains uncertain.

Read more at Yahoo Finance: Should You Buy Tesla Stock After the SpaceX-xAI Merger?