Tesla reported a $1-billion mark-to-market gain on its SpaceX holdings during the second quarter of 2026, CFO Vaibhav Taneja disclosed on Wednesday's earnings call. The gain was partially offset by foreign exchange losses of approximately $300 million and Bitcoin losses of about $100 million. The disclosure comes amid persistent rumors of a potential merger between the two Elon Musk-owned companies, though Tesla declined to address merger speculation during the call.
Tesla Acquired SpaceX Stake Through xAI Conversion
Tesla acquired its SpaceX stake through the conversion of an earlier investment rather than a direct purchase. In January 2026, Tesla invested $2 billion in xAI by purchasing convertible preferred stock. The company converted that investment into approximately 18.99 million shares of SpaceX Class A common stock, representing less than 1% of SpaceX, following the acquisition of xAI by SpaceX.
The $1-billion unrealized gain on SpaceX holdings provided a notable boost to Tesla's reported net income for the quarter. However, Tesla recorded negative free cash flow of $1.1 billion, primarily due to a sharp increase in capital expenditures as the company ramps up investments in autonomy, robotics, and AI infrastructure.
Musk Announces TerraFab Semiconductor Facility and Starlink Integration
During Tesla's Q2 2026 earnings call, CEO Elon Musk emphasized the growing strategic relationship between Tesla and SpaceX. The most significant joint initiative mentioned was TerraFab, a planned large-scale semiconductor facility. Musk described it as a critical project required to scale production of Tesla's humanoid robot Optimus, adding that Tesla would otherwise face constraints due to insufficient AI chip supply.
Tesla is also integrating SpaceX's Starlink satellite internet connectivity directly into the Cybercab, the company's dedicated robotaxi product. Musk explained that reliable, high-bandwidth connectivity is essential for robotaxi operations, as cellular coverage remains inconsistent in many areas. Starlink will help ensure continuous operation and enable premium in-car experiences, such as 4K video streaming, for passengers, once the vehicles are in unsupervised service, the company said.
TSLA Stocks Down 17% Year-to-Date as SPCX Falls 28% Since June Listing
SPCX shares closed down 7% on Wednesday but edged up 1% after-hours. SpaceX is now gearing up for the next test flight of its Starship launch vehicle, targeted for July 23.
On Stocktwits, retail sentiment around TSLA stock fell from 'bullish' to 'neutral' over the past 24 hours, while message volume rose from 'normal' to 'high' levels. Meanwhile, sentiment around SPCX stayed at 'bearish' levels, accompanied by 'normal' levels of retail chatter.
While TSLA stock has slipped 17% year-to-date, SPCX has dropped 28% since its listing on Nasdaq in June.
FAQ
What gain did Tesla report on its SpaceX holdings in Q2 2026?
Tesla reported a $1-billion mark-to-market gain on its SpaceX holdings during the second quarter of 2026, as disclosed by CFO Vaibhav Taneja on Wednesday's earnings call. The gain was offset by foreign exchange losses of approximately $300 million and Bitcoin losses of about $100 million.
How did Tesla acquire its stake in SpaceX?
Tesla acquired its SpaceX stake through the conversion of an earlier investment. In January 2026, Tesla invested $2 billion in xAI by purchasing convertible preferred stock, which was later converted into approximately 18.99 million shares of SpaceX Class A common stock, representing less than 1% of SpaceX, following the acquisition of xAI by SpaceX.
