Is he actually selling shares? Imo this move might actually be more about gaining more control percentage wise.

Similar to how he increased his control when he folded Twitter into xAI (at a imo very favorable valuation for him), which gave him a larger share of the combined company.

If he merges space x and xAI (especially at a high valuation of the latter), he would own more of the combined company as he owns more of xAI then space x.

For me the only surprising thing is how existing shareholders seemingly just let him dictate these mergers and valuations. But I guess they face a dilemma where valuation depend so much on Elon that they have to play by his rules or risk loosing even more.