To The Moon

Musk vs Altman - What It Reveals ! Have you been following the trial between Musk and Altman & Brockman that has begun in late April 2026 and finally wrapped up on 19 May 2026? On the surface, it’s about ‘fragile’ Musk being misled by its fellow founding members of Altman & Brockman. However, as the trail progressed, a new truth (to me) has emerged. While it ok that you may not agree, do read to the end and see what I am sharing makes sense. It took a while to collate all these scattered information into one post and it is worth a read. Help “Repost” pls (and “like” if you so pleases), so that more readers will get to know as well. Thanks. The Mastermind & The Maid. (1). The 27 April 2026 Lawsuit. The narrative of Elon Musk’s corporate empire shifted dramatically in early 2026, leading to the high-stakes legal battle between Musk and Sam Altman that has commenced on 27 Apr 2026. The trial in Oakland, California, overseen by Judge Yvonne Gonzalez Rogers, centers on Musk’s allegation that Sam Altman and OpenAI breached their founding "non-profit" agreement. Musk argues that OpenAI has become a "closed-source de facto subsidiary" of $Microsoft(MSFT)$. Ironically, while Musk sues Altman for prioritizing corporate profit over the original mission, he has simultaneously moved to consolidate his own AI interests into his most valuable private asset - SpaceX. Musk’s lawsuit is a strategic move. By trying to force OpenAI to share its technology, he makes it easier for $Tesla Motors(TSLA)$ and (soon to be listed) SpaceXAI to use those open-source tools to build their own systems (2). SpaceX to "SpaceXAI" On 02 Feb 2026, Musk officially announced that SpaceX would acquire xAI in a transaction that valued the combined entity at approximately $1.25 trillion. (see above) By 06 May 2026, Musk confirmed via X that xAI would be dissolved as a standalone company and fully integrated as a department known as SpaceXAI. (see above) Merger’s Key drivers : Musk’s roadmap involves moving massive AI data centers into orbit to utilize constant solar power and natural cooling, bypassing terrestrial energy constraints. SpaceX is preparing for a massive IPO (estimated for late June 2026) and will be integrating xAI’s "Grok" capabilities into SpaceX’s Starlink and defense divisions significantly boosting the IPO valuation, seeking a target of $1.75 - $2 trillion. Lastly a "triangular merger" structure was used to protect SpaceX from xAI’s specific legal liabilities and debts. Always remember to take the man’s vision with a ‘Big’ pinch of salt. He is a far better storyteller than effective executor. His poor track record is legendary. Take autonomous driving, it’s more than 10 years since he first spoke about it. TSLA’s competitor Waymo is already operating paid services in 11 US cities. TSLA ? Still in “testing” mode. Yawn ! (3). The Governance Fortress: Ownership & Control A critical factor in this realignment is Musk's grip on his various entities. Although TSLA remains (for now) his most public company, his influence there is characterized by high visibility but lower structural defense. Musk’s ownership in Tesla hovers around 13% (reaching approx. 20% with options exercised). TSLA lacks a dual-class share structure; one share equals one vote. This means, he could be outvoted by institutional giants like Vanguard or $BlackRock(BLK)$ who collectively control 40-45%. Furthermore, the 2024 Delaware court rulings that overruled his indecent pay package, proved that TSLA board can be checked by the judiciary. Fast forward to 2026, things have changed drastically. In the upcoming 2026 IPO filing, SpaceX revealed a structure that: Musk owns approx. 42% of the equity, valued at over $500 billion in paper wealth. However, he will control 79% of the voting power through super-voting Class B shares (10 votes each), ensuring near-absolute say on strategy, hires, contracts, and direction even as investors enter.. Also the IPO prospectus explicitly states that Musk can only be removed from his positions by the vote of Class B shareholders, a group he effectively dictates. At the same time, SpaceX has filed for "controlled company" status, exempting it from many independent oversight requirements. Lastly, by incorporating in Texas also sees corporate law, far more pro-founder bias than Delaware. Development-in-Progress. On 15 May 2026, it was reported that US Pension Giants overseeing over $1 trillion in assets are sharply criticizing SpaceX's proposed IPO governance as "extreme" and the most management-favourable structure ever attempted at this scale. (see below) The 3 giants, namely NYC Comretroller, NY State, and CalPERS (of course) are referring to : Provisions that grant Elon Musk super-voting control. Mandate private arbitration for disputes, effectively shielding leadership from traditional legal accountability and removal. Whether these pension funds will invest directly remains uncertain, as the situation has evolved into a high-stakes standoff between the institutional giants and SpaceX leadership. Their final decision to participate in the IPO itself (ie. active purchase) likely depends on whether SpaceX makes any concessions to the governance demands before the final S-1 prospectus is released later this summer. “Real” Control. SpaceX provides Musk with significantly tighter control. If TSLA investors ever ousted him, what they would end up owning are only (a) metal bodies of the EV and (b) Optimus robots’ metal casings. This is because the most crucial component - the brain, is owned & licensed by SpaceXAI, a company nobody can control. (4). The "Terafab" Project. The Terafab project, a work in progress as of May 2026, is the physical manifestation of this power shift. While originally teased as a shared vision, the project is now officially and strictly a SpaceXAI entity only. SpaceXAI is the lead entity on regulatory filings for the $55 billion facility in Grimes County, Texas. (see above) Initial phase is funded primarily by SpaceXAI’s private capital and expected IPO liquidity. Conversely, TSLA funds the "Research Fab" on its Austin North Campus (estimated at $3 billion). In short, TSLA is effectively funding the development of technologies that will eventually be owned by SpaceXAI. TSLA will function as a technical contributor, the tens of billions for the full-scale "Terafab" will not be part of TSLA’s standalone Capex plan. Elon has effectively ringfenced SpaceXAI from TSLA so that no legal challenge could be mounted by TSLA investors to claim a stake in SpaceX and its success. On 7 Apr 2026, $Intel(INTC)$ joined the project, contributing its 14 Angstrom (14A) process technology as the manufacturing backbone. Already, Musk has stated that: 80% of output (D3 radiation-hardened chips) belongs to SpaceXAI for orbital AI. 20% of AI5 inference chips, will be allocated to TSLA for FSD and Optimus. Summary Verdict Upon completion, Terafab belongs to SpaceXAI, while TSLA will own and operate the ‘detachable’ Research / Prototype Fab in Austin. This arrangement lets Musk to keep the most expensive & strategically "defensible" Terafab (world's largest chip plant) under the controlled umbrella of SpaceX. While TSLA remains a key technology beneficiary and primary customer for terrestrial applications. (5). Impact on TSLA. Concerns surrounding the absorption of xAI into SpaceX suggests that TSLA might lose its value, as it used to be regarded as Musk’s primary vehicle for AI technology. Well, not anymore. This change makes investors worry that Tesla will no longer be his top priority for future AI breakthroughs. However, 2026 might suggests a collaborative interdependence: On 28 Jan 2026, TSLA confirmed a $2 billion investment into the SpaceXAI ecosystem - to ensure perpetual access to the models. On 11 Mar 2026, the joint venture announced will use Grok (SpaceXAI’s IP) as the "brain" while TSLA’s AI agents act as the physical "body." While AI value shifted to SpaceX, significant personnel from xAI’s "Macrohard" team were transferred to TSLA’s Autopilot team in early 2026 instead, inferring that all may not be well with TSLA’s full self driving (FSD) capability. and fire-fighting ensues (6). Long-Term Outlook. In the medium-to-long term, Musk is positioning SpaceXAI to overtake TSLA in both valuation and strategic hierarchy. While TSLA remains the most revenue-heavy "cash cow," it is being repositioned as the "Industrial Utility". With SpaceXAI targeting a $2 trillion IPO, it is likely to eclipse TSLA’s $1.39 trillion market cap (as of 11 May 2026). By moving the AI "brain" and the $55 billion Terafab into SpaceXAI, where his control is absolute (79% vote), Musk has ensured that SpaceXAI is the "master" and TSLA ‘demoted’ to being a "client" only. My view points : (mine only) TSLA is not (really) being abandoned. Hypothetically, even if it is, it will take time for the evolution to complete its full cycle. To put it bluntly, it is slowly being “relegated” into a specialized robotics hardware and retains its automobile maker role. It will still build the batteries (megapacks) that power the data centers and the bodies / shell (Optimus) that house the AI. Like it or not, the center of the Musk-universe has officially moved off-planet. Musk will be able to run SpaceXAI like a personal fiefdom, free from public scrutiny or activist pushback. In the 2026 hierarchy, SpaceXAI is the Sovereign, and TSLA is (just) the Manufacturer, that could be outsourced in a drastic turn of events, no ? Worthy Investment ? To answer the question san emotions, I turned to TSLA’s technical indicators of (1) Simple moving averages (SMA) of 20-day, 50-day & 200-day, (2) MACD and (3) RSI. (see below) As of 12 May 2026 endday Simple Moving Averages (SMA). On 12 May 2026, TSLA ended the day at $433.45 /share. This is higher than its 3 SMA of (i) 20-day ($391.39), (ii) 50-day ($384.04) and (iii) 200-day ($405.08). Under ‘normal’ circumstances, this should be a clear signal that a stock is in a bullish momentum. Unfortunately, this is not one of those moment. Why ? If you look closely, TSLA has just entered a “death cross” formation on 9 Apr 2026, when its 50-day SMA crosses below the 200-day SMA from the top. Theoretically, the 200-day SMA ($405.08), that often acted as support, will flips to become a major resistance level, making it difficult for the price to recover. Investors should be vigilant in the coming days and weeks. MACD. Both MACD line (11.27) and Signal line (4.52) are above the Zero line, indicating a very strong extending uptrend. The strong Divergence of 6.75 also confirms an accelerating bullish momentum. RSI. With TSLA’s 14-day coming in at 74.06, it indicates that TSLA is currently in overbought territory. It is often interpreted as a warning that the market is overextended to the upside. With 12 May 2026’s trading volume at 60.57 million vs TSLA’s average trading volume of 62.84 million, a mild correction is not out of the ordinary. Remember to check out my other posts. (See below). Help to Repost ok, Thanks. Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks. Forget SpaceX IPO. RKLB, the Better Buy ! Rising Inflation Spook US Market Again? How ? Celebrate QBTS despite Weak earnings. Huh ? Do you think it is true that TSLA’s importance in Musk-Universe will fade overtime? Do you think it is still possible to make a fast profit on TSLA before jumping overboard once SpaceXAI IPOs in H2 2026 ? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents