Elon Musk has confirmed that Tesla (TSLA) shareholders will get the final say on whether the company invests in his artificial intelligence startup, xAI. The announcement comes after reports that SpaceX, also led by Musk, is planning to invest $2 billion in xAI, the creator of the Grok chatbot.
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Major Vote Ahead
SpaceX is planning to invest $2 billion in xAI, marking its first known backing of Musk’s AI startup. Responding to a post on X, Musk said the choice to invest in the AI startup wasn’t his alone. Musk added that Tesla would already be supporting xAI if he had the final say.
Last year, he ran a public poll on X asking if Tesla should put $5 billion into xAI, saying he was only gauging interest. At the time, Musk made it clear that any final decision would need approval from Tesla’s board and shareholders.
Musk’s Bold Plan to Tie It All Together
Since founding xAI, the company behind the generative AI assistant Grok, Musk has often highlighted the possible collaboration between the startup and his flagship ventures, Tesla and SpaceX. Earlier this month, he announced that Tesla will integrate Grok into its vehicles. Musk also plans to power Tesla’s Optimus robots with xAI’s artificial intelligence. This move reflects his broader vision of connecting his companies through shared technologies and establishing a deeper connection between Tesla and xAI. Meanwhile, it aligns with the views of some Tesla investors who have been pushing for strategic shifts as the company faces slowing EV sales.
However, the overlapping ownership and increasingly blurred lines between the firms raise concerns about corporate governance, transparency, and how resources are allocated, issues that are particularly significant for Tesla’s public shareholders.
What Are the Predictions for Tesla Stock?
On Wall Street, analysts have maintained a neutral stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 13 Buys, 13 Holds, and nine Sells assigned in the last three months. The average Tesla stock price target is $293.38, suggesting a potential downside of over 6% from the current level.
