Tesla shareholders are set to vote on a proposal to invest in Elon Musk’s artificial intelligence company, xAI. The move is aimed at advancing Tesla’s ambitions in AI, robotics, and energy technologies.
The proposal appears in Tesla’s proxy statement alongside a company-backed plan to increase Musk’s 10-year compensation package to $1 trillion. The xAI investment initiative was submitted by shareholder Stephen Hawk, who owns $2,000 worth of Tesla stock.
Hawk stated that integrating xAI’s Grok AI into Tesla vehicles demonstrates the potential benefits of collaboration. He argued that Tesla’s focus on Full Self-Driving and robotics technologies could be strengthened through an investment in xAI, supporting innovation and shareholder value.
Tesla’s board has taken a neutral stance on the matter but often advises shareholders to vote against such proposals. If approved, Tesla would become the second Musk-led company to fund xAI, after SpaceX committed $2 billion as part of a $5 billion equity raise. Analysts suggest SpaceX’s involvement indicates xAI may face challenges attracting external investment.
Concerns exist that xAI could compete with Tesla’s own AI initiatives. Musk has previously described Tesla as an AI-focused company. A shareholder lawsuit over the creation of a rival AI firm was dismissed last year.
The vote comes amid slowing Tesla vehicle sales and delays in the rollout of the company’s robotaxi program. Musk has argued that a greater shareholding in Tesla would allow him to focus on AI development without distraction from other ventures.
The shareholder vote is scheduled for 6 November at 3 p.m. Central Time at Tesla’s Gigafactory in Texas. Proceedings will be broadcast live. Alongside the xAI investment proposal, shareholders will also vote on a plan that could increase Musk’s control of Tesla to over 25 percent.
Experts say collaboration with xAI could enhance Tesla’s AI capabilities, provide access to computing resources, and support the company’s long-term growth strategy.
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