SpaceX acquires xAI, merging to develop space-based data centers. Tesla shares drop 2% on news. Potential deal with Tesla and SpaceX unlikely as SpaceX plans IPO. Elon Musk, largest SpaceX shareholder, hints at future acquisition. Tesla vehicles using xAI’s Grok large language model. Fair value estimate for Tesla remains $400, no change in outlook. Company transitioning to AI and autonomous driving software.

Read more at Morningstar: SpaceX and xAI Will Merge, but We Don’t Rule Out Eventual Consolidation with Tesla