Tesla Shareholders to Vote on Bailout for xAI and Twitter

Tesla shareholders will vote on investing in xAI, a private company owned by CEO Elon Musk. xAI purchased Twitter in March 2025, widely seen as a bailout. Musk has improperly used Tesla resources to boost his other companies. He will ask shareholders to invest in xAI, adding Tesla to the fold. This move could help Musk save face after a highly criticized business deal.

Tesla shareholders are set to vote on whether to invest in Elon Musk's private AI company, xAI. The decision comes after Musk confirmed that SpaceX will invest $2 billion in xAI, nearly half of its $5 billion equity raise [3]. The vote is part of Musk's strategy to expand xAI's reach and resources, potentially saving face after a highly criticized business deal.

xAI, previously known as Twitter, was acquired by Musk in March 2025 in a deal valued at $80 billion [1]. The company has since been valued at $113 billion following its merger with X, a social media platform [3]. Musk's announcement that Tesla will seek shareholder approval for investing in xAI follows his earlier statements that the EV giant would not invest in xAI without shareholder approval [1].

This move is not unprecedented for Musk, who has previously used his businesses to support xAI's growth. In 2022, Musk borrowed $1 billion from SpaceX to help fund Twitter's acquisition [3]. The $2 billion investment from SpaceX is one of the company's largest investments in an outside entity, reflecting Musk's deep involvement in xAI's development [3].

Despite the potential benefits, the move also raises concerns about Musk's use of Tesla resources to boost his other companies. Musk has been criticized for improperly using Tesla resources to support his other ventures, including SpaceX and The Boring Company [3]. The shareholder vote on investing in xAI will likely be closely watched by investors and financial professionals.

References:
[1] https://www.businessinsider.com/elon-musk-tesla-shareholders-vote-investing-xai-2025-7
[2] https://www.reddit.com/r/teslainvestorsclub/comments/1lyihcy/elon_musk_confirms_xai_is_buying_an_overseas/
[3] https://www.cryptopolitan.com/elon-musks-spacex-to-invest-2-billion-in-xai/