Is Tesla Stock Tapped Out as Musk Bets on xAI?

Tesla ( (TSLA) ) has been popular among investors this week. Here is a recap of the key news on this stock.

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Investor Peter Singlehurst of Baillie Gifford highlighted how Elon Musk’s ecosystem of companies, including Tesla, SpaceX, and xAI, is becoming more tightly interconnected, with SpaceX’s purchase of xAI seen as a potential catalyst for a new growth phase. He compared the move to Tesla’s controversial acquisition of SolarCity, which ultimately strengthened Tesla’s long‑term position and showcased Musk’s ability to create value across related businesses.

At the same time, Musk is aggressively restructuring xAI, pushing out several co‑founders and ordering multiple rounds of layoffs after criticizing the startup’s coding performance, and has even drafted in engineers from Tesla and SpaceX to audit the work. For equity investors, Tesla remains the only listed vehicle in Musk’s empire, and Wall Street currently rates Tesla stock as a Hold, with an average price target around $399 per share, signaling that analysts see the shares as trading close to fair value.