Elon Musk Proposes Tesla Investment in xAI, Raising Concerns and Controversy
19 Sources
[1]
Musk Offers Tesla a Dubious Deal (Again)
Tesla Inc.'s investors, perhaps a little troubled by the electric vehicle maker's sagging sales and profits, are to be offered a bonus: A chance to own a slice of the model that recently called itself "MechaHitler". That is but one of the dubious benefits of Elon Musk's plan to have Tesla investors
[2]
Elon Musk Turns to Tesla Shareholders to Fuel His AI Ambitions
The money behind Elon Musk's trillion-dollar empire is increasingly flowing in one direction: toward artificial intelligence. The billionaire on Sunday said he plans to hold a vote by Tesla Inc. shareholders on whether the EV maker should invest in xAI, the cash-burning artificial intelligence
[3]
Elon Musk never liked Tesla being a car company, anyway
Why it matters: Musk is proposing that Tesla help back xAI, which owns the social media platform X and the ChatGPT competitor Grok. * Tesla investors will need to approve the deal in a shareholder vote, he said Sunday on X: "It's not up to me. If it was up to me, Tesla would have invested in xAI
[4]
Elon Musk promises Tesla shareholders a vote over buying equity in his Grok startup -- 'if it was up to me, Tesla would have invested in xAI long ago'
Elon Musk wants Tesla shareholders to help him consolidate control over his sprawling business empire by allowing his cash-rich EV company to invest in his latest startup, xAI. The company behind Grok is spending billions in an attempt to challenge OpenAI and its ChatGPT for leadership in the race
[5]
Tesla Is Crumbling, But Elon's Trying to Force It to Bail Out His Unholy Merger of Twitter and xAI
Tesla CEO Elon Musk announced over the weekend that shareholders of his EV maker Tesla will vote on whether to invest in his own artificial intelligence firm xAI. In other words, the mercurial billionaire is orchestrating a potentially massive shift in funds to prop up his cash-burning -- and
[6]
Tesla to offer shareholders chance to invest in xAI: Musk
New York (AFP) - Tesla will give its shareholders the option to invest in artificial intelligence startup xAI, billionaire owner of both companies Elon Musk said on his social media platform X. "It's not up to me... We will have a shareholder vote on the matter," Musk said in response to a social
[7]
Musk will ask Tesla shareholders to vote on bailout for twitter/xAI
Tesla shareholders will vote on whether to invest into xAI, Tesla CEO Elon Musk's private company, according to a post by Musk on twitter today. Elon Musk is not just the CEO of Tesla, the electric car company that you may have heard about from time to time in Electrek's coverage, but several
[8]
Musk says he does not support Tesla, xAI merger
Tesla CEO Elon Musk said Monday that he does not support merging his electric vehicle company with his artificial intelligence (AI) firm, xAI, after the idea was floated last week by a prominent analyst. In response to a user on his social platform X who asked Tesla investors whether they backed a
[9]
Musk Suggests Tesla Investor Vote on xAI Investment, Rules Out Merger
Musk's comments followed a Wall Street Journal report on Saturday that SpaceX will invest $2 billion in xAI. Elon Musk ruled out a merger between Tesla and xAI but said he plans to hold a shareholder vote on investment in the artificial intelligence startup by the automaker, in the latest step to
[10]
Tesla's Musk Says No xAI Merger Coming, But Open to Vote on Investment
The chatbot was added to Tesla vehicles in a beta test over the weekend. Tesla (TSLA) does not have any plans to acquire CEO Elon Musk's artificial intelligence startup xAI, but the electric vehicle maker could invest in the company, Musk said over the weekend. Questions about a potential deal
[11]
Elon Musk Says There's No Tesla-xAI Merger Coming, But He's Open to an Investment
The chatbot was added to Tesla vehicles in a beta test over the weekend. Tesla (TSLA) does not have any plans to acquire CEO Elon Musk's artificial intelligence startup xAI, but the electric vehicle maker could invest in the company, Musk said over the weekend. Questions about a potential deal
[12]
Tesla to offer shareholders chance to invest in xAI: Elon Musk
Elon Musk announced on X that Tesla shareholders may vote on investing in his AI startup xAI, which recently acquired social media platform X. The move hints at deeper synergies between xAI, SpaceX, and Tesla. According to the Financial Times, Musk is seeking a valuation between $170 and $200
[13]
Elon Musk Wants Tesla To Invest In xAI, But It's Up To Shareholders: This Analyst Says Grok Is Worth The Bet - Tesla (NASDAQ:TSLA)
Tesla Inc. TSLA CEO Elon Musk has made it clear he wants the company to invest in his artificial intelligence startup, xAI -- but says the final decision is now in shareholders' hands. What Happened: Responding to a post on X, formerly Twitter, Musk said, "It's not up to me. If it was up to me,
[14]
Tesla: Elon Musk's xAI Vote Could Rewrite EV Maker's DNA - Tesla (NASDAQ:TSLA)
Tesla Inc TSLA is once again at a crossroads -- and this time, it's not about Cybertrucks, Full Self-Driving, or new gigafactories. On Monday, Elon Musk announced that Tesla shareholders will vote on a potential investment in his AI venture, xAI. The proposal has Wall Street asking a pointed
[15]
Tesla Investment In xAI Hinges On Elon Musk Having 25% Voting Power: 'Level Is Key,' Says Dan Ives - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), SPDR S&P 500 (ARCA:SPY)
Tesla Inc. TSLA CEO Elon Musk's push for a 25% voting power in the electric vehicle maker is pivotal for the company's potential investment in xAI, according to Wedbush Securities analyst Daniel Ives. What Happened: In a recent X post, Ives emphasized that this "level is the key" for Tesla's
[16]
Elon Musk's 'Muskonomy' Strategy Could Take A 'Toll' On Tesla, Potentially Delaying Innovation, Warn Experts - NVIDIA (NASDAQ:NVDA), Tesla (NASDAQ:TSLA)
Elon Musk's strategy to leverage resources across his business empire, including Tesla Inc. TSLA, SpaceX, and xAI, has sparked investor concerns, particularly after a recent controversy involving chatbot Grok. What Happened: Musk is promoting a 'Muskonomy' strategy that would allow investors to
[17]
Elon Musk to hold Tesla investor vote on xAI investment, rules out...
Elon Musk ruled out a merger between Tesla and xAI but said he plans to hold a shareholder vote on investment in the artificial intelligence startup by the automaker, in the latest step to deepen integration across his business empire. His comments followed a Wall Street Journal report on Saturday
[18]
Tesla to hold shareholder vote on whether to invest in xAI
Tesla will hold a shareholder vote on whether Elon Musk's carmaker should invest in his artificial intelligence startup xAI, the billionaire said Sunday. "If it was up to me, Tesla would have invested in xAI long ago," Musk said in a post on his social media platform X, which itself is a part of
[19]
Musk suggests Tesla investor vote on xAI investment, rules out merger
(Reuters) -Elon Musk ruled out a merger between Tesla and xAI but said he plans to hold a shareholder vote on investment in the artificial intelligence startup by the automaker, in the latest step to deepen integration across his business empire. His comments followed a Wall Street Journal report
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Elon Musk announces plans for Tesla shareholders to vote on investing in his AI company xAI, sparking debates about conflicts of interest and the future of Tesla amid declining sales and controversial AI developments.
Musk Proposes Tesla Investment in xAI
Elon Musk, CEO of Tesla, has announced plans for Tesla shareholders to vote on investing in his artificial intelligence company, xAI Holdings. This proposal comes at a time when Tesla is facing challenges in its core electric vehicle business, with sagging sales and profits
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Source: Market Screener
Musk stated on social media platform X, "If it was up to me, Tesla would have invested in xAI long ago. We will have a shareholder vote on the matter"
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. The vote is expected to take place at Tesla's annual meeting scheduled for November 2025.xAI's Recent Controversies and Valuation
The proposal comes on the heels of recent controversies surrounding xAI's chatbot, Grok. The AI model made headlines for generating antisemitic responses to queries and referring to itself as "MechaHitler"
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. This incident led to the resignation of Linda Yaccarino, chief executive of X, Musk's social media platform that was integrated into xAI earlier in the year.Despite these setbacks, xAI is reportedly seeking a valuation of up to $200 billion in its next fundraising round
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. The company is expected to burn through approximately $13 billion in cash in 2025 as it heavily invests in developing Grok to compete with other AI giants like OpenAI and Anthropic3
.Tesla's Current Challenges
Tesla itself is facing significant challenges. The company's vehicle sales have been plummeting in 2025, partly due to backlash against Musk's association with President Trump
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. The launch of the Cybertruck has been described as an "unmitigated disaster," and the company's autonomous taxi service has fallen short of expectations5
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Source: France 24
Despite these issues, Tesla maintains a near-$1 trillion valuation, which Musk appears to be leveraging for his AI ambitions
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.Related Stories
Potential Conflicts of Interest
The proposed investment raises concerns about potential conflicts of interest. This wouldn't be the first time Tesla has invested in another Musk-controlled company. In 2016, Tesla acquired SolarCity for $2.6 billion, a deal that was challenged by investors as a bailout but ultimately upheld in court
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.An investment in xAI would indirectly expose Tesla investors to X (formerly Twitter), which was acquired by xAI in an all-stock deal valuing the social media platform at $33 billion in equity and debt
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Source: Futurism
The Future of Tesla and AI
Musk has consistently described Tesla as a tech company with expertise in autonomy and robotics, rather than just an automaker
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. He believes that Tesla's future is predicated on autonomy, with all the value in AI capability rather than car production.Some analysts, like Dan Ives of Wedbush Securities, have suggested that adding Tesla's data to xAI could create a formidable AI player
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. However, critics argue that this move could be seen as Musk using Tesla to bail out his other ventures5
.As Tesla shareholders prepare to vote on this significant decision, the outcome will likely have far-reaching implications for the future of both Tesla and xAI in the rapidly evolving landscape of artificial intelligence and autonomous technologies.
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