Tesla's Shareholder Meeting: Vote on xAI Investment Proposal

Tesla shareholders will vote on a proposal to authorize an investment in xAI at the November 6 shareholder meeting. The filing highlights Tesla's transformation into a multi-product company with a focus on energy, autonomous driving, and clean energy. The investment in xAI is seen as a strategic move to expand Tesla's capabilities in AI and machine learning.

Tesla shareholders will vote on a proposal to authorize an investment in Elon Musk's artificial intelligence startup, xAI, at the company's November 6 shareholder meeting. The filing highlights Tesla's transformation into a multi-product company with a focus on energy, autonomous driving, and clean energy. The investment in xAI is seen as a strategic move to expand Tesla's capabilities in AI and machine learning.

The proposed investment in xAI, which Musk started in early 2023 and merged with his social networking company X earlier this year, comes as Tesla seeks to diversify its offerings and stay competitive in the rapidly evolving tech industry. The company plans to use the investment to support xAI's data centers and specialized computer chips, which are crucial for developing large language models and chatbots like Grok.

The vote on xAI is part of a broader shareholder meeting agenda that includes a proposal for a new CEO pay plan for Elon Musk. The proposed pay plan, worth about $975 billion, ties Musk's compensation to a series of ambitious milestones, including doubling Tesla's market cap to $2 trillion and delivering 20 million vehicles. The plan also includes operational milestones such as deploying one million Robotaxis and delivering one million AI Bots.

The shareholder meeting comes at a critical time for Tesla, which has been facing declining sales and a multi-quarter sales slump due to its aging lineup, competition from Chinese automakers, and Musk's public involvement with the Trump administration. The company's stock price has fallen more than 30% since its peak in December 2024.

Despite the challenges, Tesla's board maintains that the proposed pay plan and investment in xAI are necessary to keep Musk motivated and focused on delivering for the company. The board's pitch for a ten-year Musk pay plan comes as his attention remains divided across his other ventures, including SpaceX, Neuralink, and The Boring Company.

The shareholder meeting is scheduled for November 6, and investors will have the opportunity to voice their opinions on both the CEO pay plan and the investment in xAI.

References:
[1] https://www.cnbc.com/2025/09/05/tesla-musk-pay.html
[2] https://www.mercurynews.com/2025/09/05/tesla-shareholders-to-vote-on-xai-investment-in-november/
[3] https://www.gurufocus.com/news/3095938/tsla-tesla-shares-climb-as-musk-targets-2-trillion-valuation-in-pay-plan
[4] https://www.businessinsider.com/tesla-elon-musk-november-shareholder-meeting-reject-accountability-sustainability-proposals-2025-7