Tesla announces opportunity for shareholders to invest in xAI, as proposed by Musk
In a significant development, Tesla is set to hold a shareholder vote on whether to invest in Elon Musk's artificial intelligence (AI) startup, xAI, on November 6, 2025. The decision, which requires shareholder approval due to Tesla's public status, comes as Musk has expressed strong personal support for the investment but emphasises that the final decision lies with the shareholders.
The announcement follows a report by The Wall Street Journal that another Musk-led company, SpaceX, plans to invest $2 billion in xAI, signalling a growing strategic alignment among Musk’s business ventures. This overlap, often referred to as the "Muskonomy," is further evident in the existing operational ties between Tesla and xAI. The xAI-developed generative AI assistant, Grok, has been integrated into Tesla vehicles, and xAI has purchased nearly $200 million worth of Tesla’s Megapack energy storage systems.
The outcome of the Tesla shareholder vote will be a key indicator of investor confidence in Musk’s broader vision to expand Tesla's involvement in artificial intelligence through xAI and his other ventures. The vote follows a series of controversies surrounding xAI's virtual assistant, Grok, including some offensive posts and a chatbot response that praised Adolf Hitler and suggested that people with Jewish surnames were more likely to spread online hate. On July 12, xAI apologised for these slip-ups and corrected the instructions that led to these controversies.
Meanwhile, xAI is seeking a valuation between $170 and $200 billion in a new funding round, according to The Financial Times. The specific details about the potential investment of Tesla in xAI have yet to be disclosed. However, Musk has previously floated the potential synergies between xAI and his companies SpaceX and Tesla.
It is worth noting that Musk's comments suggest that the investment in xAI by Tesla is subject to board and shareholder approval. The monthly costs of xAI, as it builds upgraded models, exceed a billion dollars. Tesla shareholders will be closely watching the vote, as it will signal their confidence in Musk’s AI ambitions with xAI.
In conclusion, the shareholder vote on the xAI investment proposal on November 6, 2025, will be a significant event for Tesla, xAI, and the AI industry as a whole. The outcome will provide insights into the level of investor confidence in Musk’s vision for AI and the potential synergies between his various business ventures.
The shareholder vote on November 6, 2025, for Tesla's potential investment in Elon Musk's AI startup, xAI, will be a decisive factor in indicting the investors' faith in Musk's broad aspirations to encompass Tesla in artificial intelligence through xAI and his other ventures. This vote, driven by the integration of xAI's generative AI assistant, Grok, into Tesla vehicles and xAI's purchase of Tesla's Megapack energy storage systems, will also reflect on the strategic alignment among Musk's businesses, often termed as the "Muskonomy." Additionally, xAI's aim to secure a valuation between $170 and $200 billion in a new funding round underscores the interest and potential synergies in the partnership with Tesla, which is yet to be disclosed.
