Elon Musk has announced that Tesla will seek shareholder approval before making any potential investment in his artificial intelligence venture, xAI.
This development comes amid increasing speculation about deeper collaboration within Musk’s expanding tech empire.
As Tesla and xAI may merge as per rumors, but what is the truth? let’s see !
Musk Responds to Investor Concerns Regarding Tesla and xAI
The update came via Musk’s X (formerly Twitter) account, in response to a user who questioned whether Tesla’s retail investors would miss out on xAI’s growth opportunities.
“It’s not up to me. If it was up to me, Tesla would have invested in xAI long ago,” Musk said, adding, “We will have a shareholder vote on the matter.”
Though Musk didn’t provide a timeline for the vote, the public acknowledgment indicates that Tesla is seriously considering a formal partnership or financial stake in xAI.
SpaceX Eyes $2 Billion xAI Investment
Musk’s remarks followed a report that SpaceX—his private aerospace company—is planning a $2 billion investment in xAI.
He confirmed the news on Sunday morning, stating, “It would be great, but subject to board and shareholder approval.”
The Wall Street Journal had initially broken the story, citing sources close to the matter.
Tesla and xAI haven’t responded to media requests for comment.
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xAI’s Deep Ties to the “Muskonomy”
Founded in July 2023, xAI has raised more than $12 billion through Series A, B, and C funding rounds, valuing the company at approximately $50 billion.
The startup has leaned heavily on its affiliation with Musk’s broader portfolio—what some investors now refer to as the “Muskonomy.”
A February 2024 Bloomberg report revealed that xAI had pitched investors on its strategic alignment with Musk-led companies like Tesla, SpaceX, Neuralink, and The Boring Company.
Musk himself reinforced this vision in a June post on X, stating: “Loyalty deserves loyalty,” referencing shareholders across his companies.
Acquisition of X and New Funding Milestones
In March 2025, xAI completed an all-stock acquisition of social media platform X, previously known as Twitter.
Musk disclosed that the deal valued xAI at $80 billion and X at $33 billion, after subtracting $12 billion in debt from the latter’s valuation.
More recently, Morgan Stanley reported that xAI had secured an additional $10 billion through a combination of debt and equity.
The oversubscribed round attracted major global debt investors, with proceeds earmarked for developing xAI’s data centers and its AI-powered chatbot, Grok.
Will Tesla and xAI Unite?
While the exact date of Tesla shareholder vote remains unknown, the move could signal a pivotal moment for both Tesla and xAI.
If approved, it would formally unite Tesla’s innovation in electric vehicles and autonomy with xAI’s ambitions in artificial intelligence, potentially reshaping the landscape of tech investment under Musk’s leadership.
Source: Business Insider
