Tesla's Elon Musk Seeks Shareholder Approval to Invest in AI Chatbot Developer xAI.

Tesla CEO Elon Musk has suggested that shareholders should vote on whether the company should invest in his AI company, xAI, which develops the chatbot Grok. xAI is known for its AI technology, including its chatbot Grok. The proposal has sparked interest in the tech and automotive industries, with some seeing it as a potential strategic move for Tesla to leverage AI technology for its electric vehicles and autonomous driving initiatives.

Tesla (TSLA) shareholders will soon have the opportunity to vote on whether the company should invest in Elon Musk's AI startup, xAI. The proposal, which Musk hinted at over the weekend, has sparked interest in the tech and automotive industries, with some seeing it as a strategic move to leverage AI technology for Tesla's electric vehicles and autonomous driving initiatives.

Musk, who also serves as the CEO of SpaceX, stated that Tesla does not have any plans to acquire xAI but is open to investing in the company. This revelation came after xAI's Grok AI chatbot was added to Tesla vehicles as a beta test program and following reports that SpaceX is investing $2 billion in xAI [1].

The integration of Grok into Tesla vehicles is expected to be completed "very soon," according to Musk, who announced the news on X, the social media platform he owns. Grok, which is both a chatbot and a large language model (LLM), is designed to allow users to have natural conversations with their cars and issue voice commands [2].

The potential investment in xAI could have significant implications for Tesla's future. Grok's advanced AI capabilities could enhance Tesla's autonomous driving features and improve the overall user experience in its vehicles. However, the exact nature of the investment and its impact on Tesla's financials remain to be seen.

Tesla's annual shareholder meeting is scheduled for November 6, where a vote on the investment in xAI could take place. Musk has asked his followers if Tesla should invest in xAI and indicated that he would discuss the matter with Tesla's board after receiving a majority of votes in favor. It is unclear whether these discussions have already taken place or if Tesla has already invested in or paid xAI to have Grok added to its vehicles [1].

Tesla's stock price has been volatile in recent months, with shares up nearly 1% in afternoon trading on July 2, 2025, after entering the day down more than 20% since the start of the year. The company's financial performance and strategic decisions, including the potential investment in xAI, will continue to influence its stock price [1].

References:
[1] Investopedia. (2025). Elon Musk Says There's No Tesla xAI Merger Coming, But He's Open to an Investment. [URL](https://www.investopedia.com/elon-musk-says-there-s-no-tesla-xai-merger-coming-but-he-s-open-to-an-investment-11771423)
[2] Financial Express. (2025). Elon Musk Says Grok AI Chatbot Coming to Tesla Vehicles as Early as Next Week. [URL](https://www.financialexpress.com/life/technology/elon-musk-says-grok-ai-chatbot-coming-to-tesla-vehicles-as-early-as-next-week-all-you-need-to-know/3910377/)