Tesla Inc. CEO Elon Musk has expressed his desire for the company to invest in his artificial intelligence startup, xAI. However, the final decision now rests in the hands of shareholders.
What Happened
Musk responded to a post, stating, “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.”
Recent Developments
The statement follows a report that another Musk-led company, SpaceX, is preparing to invest $2 billion into xAI, the maker of the Grok chatbot. Gene Munster, managing partner at Deepwater Asset Management, weighed in on the matter, saying, “If Tesla’s future is autonomy, then Tesla investors and the board should support the investment.”
Why It’s Important
xAI was founded in 2023 and has since acquired Musk’s social media platform X. The startup has secured a $5 billion debt financing round and an additional $5 billion strategic equity investment to strengthen its AI infrastructure.
Grok Chatbot
Last week, Musk confirmed that Grok will be available in Tesla vehicles very soon, likely by this week. Morgan Stanley revealed that xAI has plans to launch new data centers as competition intensifies.
Tesla Stock Performance
Benzinga’s Edge Stock Rankings indicate that TSLA is trending downward in the short term but continues to show positive momentum over the medium and long term. The stock has a solid growth score, although its value rating is relatively lower.
Key Points
- Tesla Inc. CEO Elon Musk wants the company to invest in xAI
- The final decision rests in the hands of shareholders
- xAI has secured significant funding to strengthen its AI infrastructure
- Grok chatbot will be available in Tesla vehicles soon
- Tesla stock shows positive momentum over the medium and long term
Conclusion
The investment proposal for xAI is a significant development for Tesla, and the outcome of the shareholder vote will be closely watched. With the potential integration of Grok chatbot in Tesla vehicles, the company’s future in autonomy looks promising.