Tesla Inc. has received multiple shareholder proposals regarding a potential investment in Elon Musk’s artificial intelligence startup, xAI. The company will include one properly submitted proposal on the topic in its annual proxy statement.
What Happened
Tesla acknowledged the growing interest in the proposed investment in xAI’s parent company, Grok. The company stated that it will include one properly submitted proposal on the topic in its annual proxy statement, citing U.S. Securities and Exchange Commission rules.
Key Points
- Tesla has received multiple shareholder proposals on xAI
- The company will include one properly submitted proposal on the topic in its annual proxy statement
- The shareholder who made the first proper submission on the topic will be invited to attend the shareholder meeting in person
Statement from Tesla
Thanks for your engagement in this shareholder proposal process! We have received a number of shareholder proposals on xAI. Consistent with SEC rules, our proxy statement would include one properly submitted proposal on each topic, and we would invite the shareholder who made the first proper submission on the topic to attend our shareholder meeting in person.
Importance of the Proposal
Tesla’s annual shareholder meeting is scheduled for November 6, and the deadline for submitting proposals is July 31. Those interested in attending are advised to look out for Tesla’s proxy for more details.
Background
Elon Musk previously ruled out a merger between Tesla and xAI but stated that a shareholder vote on a potential investment is being planned. “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,” he said.
xAI’s Recent Activities
xAI raised $10 billion in combined debt and equity financing earlier this year and acquired social media platform X to bolster its chatbot Grok.
Price Action
Tesla shares have declined 21.74% so far this year but have gained 43.50% over the past 12 months. On the day of the announcement, the stock rose 3.52% during regular trading and ticked up another 0.52% in after-hours trading.
Performance Insights
Tesla’s stock boasts a strong growth score, although its value rating remains on the lower side. The company is experiencing short-term downward pressure but maintains positive momentum over the medium and long term.