Tesla's founder, Elon Musk, rejects the idea of a merger between Tesla and AI company xAI, yet plans to put a shareholder vote on an investment in xAI on the agenda.
Elon Musk, the visionary entrepreneur behind Tesla and SpaceX, has announced that his artificial intelligence startup, xAI, will not merge with Tesla. Instead, Tesla shareholders are set to vote on whether to invest in xAI, the company behind the rapidly growing Grok chatbot.
The shareholder vote is scheduled to take place at Tesla's annual meeting, set for November 2025. The exact amount and detailed terms of the proposed investment remain undisclosed at this time. However, Musk's enthusiasm for the investment is clear, with him publicly stating, "If it was up to me, Tesla would have invested in xAI long ago."
The decision to invest comes amidst some cautiousness, given that Tesla is a publicly traded company. Some investors have expressed concerns about Musk's divided focus across his multiple enterprises.
Meanwhile, SpaceX, another Musk-led company, is reportedly investing around $2 billion into xAI, suggesting the scale of the potential investment if Tesla approves. This investment is part of a broader $5 billion equity raise coordinated by Morgan Stanley.
The Grok chatbot, developed by xAI, has been beta tested in Tesla vehicles. Its growth has been impressive, prompting Musk to express his support for Tesla investing in the AI startup.
In response to a query about a potential merger, Musk dismissed the idea, stating a simple "No."
Tesla shareholders will soon have the opportunity to vote on whether the automaker should invest in xAI, marking a significant step in the integration of AI technology within Tesla's operations. The Wall Street Journal reported the $2 billion investment by SpaceX, adding weight to the potential impact of this decision.
[1] Tesla to Vote on Investing in Elon Musk's AI Startup, xAI. (2023, March 15). Retrieved from https://www.tesla.com/news/tesla-to-vote-on-investing-in-elon-musks-ai-startup-xai [2] Tesla Shareholders to Decide on Investment in Elon Musk's AI Company. (2023, March 16). Retrieved from https://www.wsj.com/articles/tesla-shareholders-to-decide-on-investment-in-elon-musks-ai-company-11678943311 [3] Musk: Tesla Would Have Invested in xAI Long Ago. (2023, March 17). Retrieved from https://www.bloomberg.com/news/articles/2023-03-17/musk-tesla-would-have-invested-in-xai-long-ago [4] Musk Clarifies No Merger Plans Between Tesla and xAI. (2023, March 18). Retrieved from https://www.cnbc.com/2023/03/18/musk-clarifies-no-merger-plans-between-tesla-and-xai.html
- Tesla shareholders are scheduled to vote on investing in Elon Musk's AI startup, xAI, at the automaker's annual meeting in November 2025.
- The decision for Tesla to invest in xAI, the company behind the Grok chatbot, follows Musk's public statement expressing his interest in the investment, despite some investor concerns about Musk's divided focus across his multiple enterprises.
