Tesla Inc. CEO Elon Musk has made it clear that he wants the company to invest in his artificial intelligence startup, xAI. However, the final decision now rests in the hands of Tesla’s shareholders.
What Happened
Musk recently stated that if it were up to him, Tesla would have invested in xAI long ago. He announced that a shareholder vote will be held to decide on the matter.
“It’s not up to me. If it was up to me, Tesla would have invested in xAI long ago. We will have a shareholder vote on the matter.” - Elon Musk
Background
The statement comes after a report emerged that another Musk-led company, SpaceX, is preparing to invest $2 billion in xAI, the maker of the Grok chatbot. This move is seen as a strategic step to strengthen xAI’s AI infrastructure and stay competitive in the market.
Expert Insights
Gene Munster, managing partner at Deepwater Asset Management, weighed in on the situation, saying:
“If Tesla’s future is autonomy, then Tesla investors and the board should support the investment. xAI can help power that future either as a partner or part of Tesla. The faster they can get cash, the higher the odds of success for both companies.”
Why It’s Important
xAI was founded in 2023 and has since made significant strides in the AI industry. In March, it acquired Musk’s social media platform X. The company has also secured a $5 billion debt financing round and an additional $5 billion strategic equity investment to bolster its AI infrastructure.
What’s Next
With the launch of Grok 4, Musk confirmed that the chatbot will be available in Tesla vehicles soon. This move is expected to enhance the overall user experience and autonomous driving capabilities of Tesla’s electric vehicles.
Market Performance
Tesla’s stock has been trending downward in the short term but continues to show positive momentum over the medium and long term. The company’s growth score is solid, although its value rating is relatively lower.
Conclusion
As Tesla’s shareholders prepare to vote on the xAI investment, the electric vehicle giant’s future hangs in the balance. Will Grok prove to be a worthy gamble for Tesla, or will the company decide to explore other avenues? Only time will tell.