The Tesla boss even suggested that Tesla could invest $5 billion in xAI. The two companies, both founded by Musk, already have business ties: xAI spent nearly $200 million on Tesla’s Megapack batteries in 2024. Tesla has also incorporated xAI’s chatbot, Grok, into its cars.
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But at Tesla’s shareholder meeting, a majority turned against a non-binding, advisory proposal for investments in xAI. There were a remarkable number of shareholders who abstained from voting. According to Tesla’s articles of association, abstentions are considered negative votes.
Entanglement
Tesla says it will take the results into account in subsequent steps. An investment in xAI would further entangle Musk’s business empire. His rocket company SpaceX is already an investor in xAI. Earlier this year, Musk also merged xAI with X, which was previously known as Twitter. xAI also uses messages on X to train its AI models.
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The proposed mega reward of 1 trillion (or 1 trillion dollars) for Musk received a large majority at the shareholders’ meeting, despite criticism in the run-up to the meeting from various advisors and investors. There are conditions attached to the payment of the share package. For example, the company must be worth almost six times as much on the stock exchange. Tesla must also achieve ambitious sales targets for robotaxis and AI robots.