Shares of Tesla Inc. demonstrate high potential for long-term investors after Elon Musk’s Space Exploration Technologies Corp. (SpaceX) completed a massive initial public offering. The aerospace giant’s historic IPO officially recorded raising around $86 billion, with another $25 billion to be added from an upcoming bond issuance.

Armed with more than $110 billion in cash, SpaceX plans a massive increase in capital expenditures, which will directly support Tesla’s business — the automaker is mentioned more than 80 times in the 370-page IPO prospectus.

Tesla’s current market value stands at an impressive $1.2 trillion, despite the fact that its electric vehicle sales have declined for several years in a row. Wall Street is increasingly evaluating the company less as a traditional automaker, positioning it instead as an AI business, and now — as a hidden player in the space sector.

Tesla has expanded beyond the boundaries of the automotive market by integrating its technological solutions into space programs. The aerospace giant and its xAI division have become major buyers of Tesla Megapack containerized battery systems to power data centers and a future moonbase, while the joint Terafab and Macrohard initiatives aim to create orbital chips and software AI platforms designed to operate directly in space.