Tesla to Vote on xAI Investment Amid Shareholder Concerns

Tesla will hold a shareholder vote on whether to invest in Elon Musk's AI startup xAI. Musk has been pouring resources from other companies into xAI, which has raised $6 billion from investors and is valued at $24 billion. Tesla shareholders will decide if the company should invest in xAI, which could be complicated given concerns about Musk's priorities and outside activities. The vote will take place at Tesla's annual shareholder meeting on November 6.

Tesla Inc. (TSLA) shareholders will soon decide whether the company should invest in Elon Musk's artificial intelligence (AI) startup, xAI. The vote will take place during Tesla's annual shareholder meeting scheduled for November 6. This decision comes as Musk has been pouring resources into xAI, which has raised $6 billion from investors and is valued at $24 billion [1].

Musk's investment in xAI has been significant. SpaceX, another Musk company, has reportedly contributed $2 billion to xAI's recent $10 billion fundraising round [2]. This investment has raised concerns among some shareholders about Musk's priorities and potential conflicts of interest, given his involvement in multiple companies and his influence over Tesla's decision-making processes.

The integration of xAI's Grok chatbot into Tesla vehicles has been a key focus. Grok, a chatbot developed by xAI, is set to power Starlink customer support and integrate with Tesla's Optimus robots [2]. The beta test of Grok in Tesla vehicles began on July 12, signaling Tesla's growing push into AI as electric vehicle sales slow [1].

The upcoming vote will be a crucial moment for Tesla shareholders. They will need to consider the potential benefits and risks of investing in xAI. While an investment could help Tesla stay competitive in the AI space, it could also expose shareholders to the risks associated with Musk's other ventures and the volatile nature of the AI market [3].

The vote will also be an opportunity for Tesla shareholders to weigh in on Musk's leadership and priorities. As the world's richest person, Musk has a significant influence over Tesla and his other companies. This vote could provide shareholders with a chance to voice their opinions on Musk's approach to managing his sprawling business empire [3].

References:
[1] https://www.investopedia.com/teslas-musk-says-no-xai-merger-coming-but-open-to-vote-on-investment-11771423
[2] https://www.ainvest.com/news/tesla-shareholders-vote-xai-investment-spacex-agrees-pump-2-billion-2507/
[3] https://fortune.com/2025/07/14/elon-musk-promises-tesla-shareholders-vote-buying-equity-grok-startup-xai/