This would be a horrible deal for Tesla investors.

Long-term investors would lose about 40% of their investment to subsidize the inflated valuation of X (bought by xAI), the inflated valuation of xAI (bought by SpaceX), and SpaceX (whose valuation is based on the assumption that demand for inference is effectively unlimited, and that everyone will prefer hardware in space over Earth).

The valuation of both companies was inflated prior to acquisition, and Tesla shareholders will be asked to dilute their investment by absorbing that cumulative inflation.

Not even to mention that Musk would have exclusive control over the entire conglomerate, with not even the pretense of a Board to check his power.

When even Steven Mark Ryan is like "let's pump the breaks a little bit," you know it's bad.