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Tesla shareholders will soon vote whether to let the electric vehicle maker invest in Elon Musk\u2019s AI startup xAI, a proposal pitched as a way to strengthen Tesla\u2019s ambitions in AI, robotics, and energy.\u00a0<\/p>\n
Listed in Tesla\u2019s proxy statement<\/a> alongside a company-backed push to raise Musk\u2019s 10-year pay package to $1 trillion<\/a>, the proposal comes from Stephen Hawk, a Florida shareholder with a $2,000 stake of common stock. His supporting statement reads:<\/p>\n Tesla\u2019s integration of Grok into its vehicles demonstrates the tangible benefits of collaboration with xAI. As Tesla pivots toward AI-driven technologies, including Full Self-Driving and robotics, a strategic investment in xAI would secure access to advanced AI capabilities, enhance product innovation, and drive shareholder value.\u00a0<\/p>\n<\/blockquote>\n The board, which often suggests investors vote against shareholder proposals, is neutral on this one.\u00a0\u00a0<\/p>\n If Tesla does end up investing in xAI, it would be the second of Musk\u2019s companies to do so. SpaceX, Musk\u2019s aerospace company, has committed to investing $2 billion in xAI<\/a> as part of a $5 billion equity raise. Analysts have speculated that SpaceX\u2019s involvement in xAI could signal the AI firm is having trouble raising from outside investors.\u00a0(Musk also merged X, the company formerly known as Twitter, with xAI earlier this year<\/a>.)<\/p>\n Some Tesla shareholders have argued that xAI is a rival to Tesla, since Musk has often described his EV company as an AI company. Last year, shareholders sued Musk<\/a> and the company for allowing Musk to start a rival AI firm, but the case was dismissed.<\/p>\n Hawk\u2019s proposal comes as Tesla grapples with weakening EV sales and a lackluster robotaxi rollout. The company has attempted to direct investor attention away from those headwinds and toward Tesla\u2019s AI efforts, which center on testing and deploying autonomous vehicles and Optimus, its humanoid robot.\u00a0<\/p>\n Musk has argued that he requires more of a controlling stake in Tesla to lead the company\u2019s AI efforts, rather than get distracted by his other AI company. Alongside the proposal to invest in xAI, shareholders will vote on a Tesla-backed 10-year compensation plan for Musk that could give him more than 25% control.\u00a0<\/p>\n Techcrunch event<\/p>\n \n\t\t\t\t\t\t\t\t\tSan Francisco<\/span> The filing comes as Tesla continues to appeal a Delaware judge\u2019s decision to strike down Musk\u2019s earlier $56 billion pay package. The new plan would tie Musk\u2019s compensation to ambitious benchmarks, including boosting Tesla\u2019s market value from about $1 trillion today to more than $8 trillion.<\/p>\n \u201cTesla\u2019s not going to get to $8 trillion market cap based on FSD and robotaxi. To get to that $8 trillion, you kind of need xAI,\u201d Gene Munster,\u00a0managing partner at Deepwater Asset Management, told TechCrunch. \u201cWe\u2019re talking numbers that have historically been inconceivable. To get to those, we need things to happen that are inconceivable right now. And one of them is humanoid robots everywhere; that\u2019s probably the biggest lever.\u201d<\/p>\n The investor noted that xAI could help Tesla reach that market cap in several ways. <\/p>\n \u201cJust the excitement around xAI and Tesla together is going to move Tesla\u2019s valuation higher,\u201d he said, adding that potential returns from that investment and access to xAI\u2019s resources, like compute, could help boost shareholder value and Tesla\u2019s own AI ambitions. <\/p>\n Tesla\u2019s shareholder vote is scheduled for November 6 at 3 p.m. central time at Tesla\u2019s Gigafactory Texas, and will stream live here<\/a>.\u00a0<\/p>\n<\/div>\n\n
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