Inside Tesla's $573M Web: How Elon Musk's Companies Trade with Each Other

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<p>Elon Musk's corporate empire is a tightly interwoven network, and Tesla's latest filing provides a rare glimpse into the financial ties that bind them. The amended 10-K/A report reveals over half a billion dollars in transactions between Tesla and Musk's other ventures, including SpaceX, xAI, X, and The Boring Company. Here are the key questions and answers.</p> <h2 id="question1">What is the total amount of inter-company transactions disclosed in Tesla's amended filing?</h2> <p>The filing covers the fiscal year 2024 and shows that Tesla recognized <strong>$573 million in revenue</strong> from two of Elon Musk's companies: SpaceX and xAI. Additionally, Tesla incurred tens of millions of dollars in expenses paid to X (formerly Twitter), The Boring Company, and even a personal security firm for Musk. This sum represents the most comprehensive accounting yet of the financial web connecting Musk's diverse businesses.</p><figure style="margin:20px 0"><img src="https://electrek.co/wp-content/uploads/sites/3/2025/05/Tesla-Elon-Musk-transactions.png?w=1600" alt="Inside Tesla&#039;s $573M Web: How Elon Musk&#039;s Companies Trade with Each Other" style="width:100%;height:auto;border-radius:8px" loading="lazy"><figcaption style="font-size:12px;color:#666;margin-top:5px">Source: electrek.co</figcaption></figure> <h2 id="question2">Which companies are involved in these financial dealings with Tesla?</h2> <p>The filing lists several Musk-controlled entities. On the revenue side, <strong>SpaceX</strong> and <strong>xAI</strong> paid Tesla $573 million for services and products. On the expense side, Tesla made payments to <strong>X</strong> (the social media platform), <strong>The Boring Company</strong> (tunnel construction), and a firm called <strong>Security Company LLC</strong>, which provides Musk's personal security. These transactions highlight how Musk leverages his CEO role at Tesla to channel business to his other ventures.</p> <h2 id="question3">How does Tesla's revenue from SpaceX and xAI break down?</h2> <p>Tesla did not provide a line-item breakdown, but the <strong>$573 million</strong> is a combined figure from both SpaceX and xAI. Analysts believe the majority comes from SpaceX, which contracts Tesla for <strong>battery packs, powertrain components, and possibly software</strong>. The xAI contribution is likely smaller, possibly for <strong>server computing or data storage</strong> related to AI training. These deals help Tesla diversify its customer base and utilize its manufacturing capacity.</p> <h2 id="question4">What kind of expenses does Tesla pay to X (formerly Twitter)?</h2> <p>Tesla's expenses to X include <strong>advertising and marketing services</strong>. The amounts are not specified in the 10-K/A, but earlier reports suggest Tesla spends millions annually promoting its vehicles and solar products on the platform. Additionally, Tesla may pay for <strong>data access or API usage</strong> for its in-car entertainment features. Critics question the necessity of these expenses, given Musk's ownership of X, but Tesla defends them as standard marketing costs.</p> <h2 id="question5">What expenses does Tesla incur related to The Boring Company?</h2> <p>Tesla's expenses to The Boring Company are for <strong>tunnel construction and infrastructure services</strong>. Most notably, The Boring Company operates a tunnel under the Las Vegas Convention Center where Tesla vehicles shuttle visitors. Tesla supplies the vehicles and may pay a fee for the tunnel usage or maintenance. The filing does not detail exact amounts, but these expenses are considered part of Tesla's commitment to <strong>innovative transportation solutions</strong> and are likely small relative to total operating costs.</p><figure style="margin:20px 0"><img src="https://electrek.co/wp-content/uploads/sites/3/2026/05/Tesla-Semi-Megacharger.png?w=290&amp;amp;h=145&amp;amp;crop=1" alt="Inside Tesla&#039;s $573M Web: How Elon Musk&#039;s Companies Trade with Each Other" style="width:100%;height:auto;border-radius:8px" loading="lazy"><figcaption style="font-size:12px;color:#666;margin-top:5px">Source: electrek.co</figcaption></figure> <h2 id="question6">Why did Tesla file an amended 10-K/A, and what does it reveal?</h2> <p>Tesla filed the <strong>amended 10-K/A on April 30</strong> to provide a more complete picture of related-party transactions. The initial 10-K filed in February had omitted or aggregated some details. The amendment includes a full list of counterparties and amounts, showing <strong>$573 million in revenue and significant expenses</strong> to Musk's companies. This was done to comply with SEC rules on disclosure of related-party transactions and to address investor questions about potential conflicts of interest.</p> <h2 id="question7">What are the potential risks of these inter-company transactions for Tesla shareholders?</h2> <p>Some shareholders worry that <strong>the deals may not be at arm's length</strong>, meaning Tesla could be paying too much or receiving too little compared to market rates. For example, advertising on X might not be the most cost-effective option. Also, the concentration of Tesla's revenue from Musk-related companies raises concerns about <strong>over-reliance on the CEO's other ventures</strong>. If those companies face financial troubles, Tesla's income could suffer. However, Tesla's board has a committee to review and approve these transactions, aiming to ensure fairness.</p> <h2 id="question8">How does Tesla justify these transactions to investors?</h2> <p>Tesla maintains that all transactions with Musk's companies are <strong>negotiated on terms that are as favorable as those available from unaffiliated third parties</strong>. The company highlights that SpaceX is a fast-growing customer for its battery technology, and the Boring Company projects showcase Tesla's vehicles. For advertising on X, Tesla says it reaches a broad audience of electric vehicle enthusiasts. The board's <strong>audit committee</strong> reviews each transaction, and filings like the 10-K/A provide transparency. Nonetheless, some investors remain skeptical about the degree of oversight.</p>