Elon Musk wants Tesla Shareholders help him consolidate his control over his vast business empire by allowing his cash-rich electric vehicle company to invest in his latest startup Xai.
The company behind Grok is spending billions of dollars trying to challenge Openai and its gatgpt led in the race to develop artificial universal intelligence. Last week, Musk announced the fourth generation of his Grok chatbot, currently being launched at Tesla Vehicles, just the day after setting up dates for the automaker’s long-extended annual meeting date.
“If it’s up to me, Tesla will invest in Xai a long time ago,” Musk said Sunday night. “We’ll have a shareholder vote on this matter.”
The next chance will be November, when Tesla is finally scheduled to take place Annual Meeting. Tesla did not respond wealth Asked for further comments, speculation surrounding Tesla’s investment in XAI is not surprising.
SpaceX reportedly invests $2 billion in XAI
For beginners, Wall Street Journal Report On Saturday, Musk’s private ownership SpaceX Despite limited business principles Confirmed story). According to its sources, Grok is only used for some customer support features of Starlink, a satellite broadband service, the satellite is being used only.
Furthermore, as Musk pointed out, he has been paying attention to Tesla’s investments for some time. About four weeks after Tesla’s last annual shareholder meeting in June 2024, Musk conducted a social media poll.
Tesla should invest $5B @xaiAssume that the valuation is set by several reliable external investors?
(Requires board approval and shareholder votes, so this is just to test the waters) – Elon Musk (@elonmusk) July 24, 2024
In it, he asked X users – only a small percentage of them might be Tesla investors – whether the auto company should invest $5 billion “assuming the valuation is set by several reliable outside investors”. When nearly two-thirds of the responses were favored, Musk promised to discuss the issue with the board.
However, since then, there has been little new development.
Xai raises $5 billion in new capital – via debt sale
This may be because from a governance perspective, using the money that belongs to Tesla shareholders to buy Musk Xai shares is not that simple. Even with a clear use case, such as integrating Grok into Tesla electric cars, there is a conflict of interest.
For example, an investment that would be exposed indirectly to X, an all-stock deal that XAI acquired last year, which values the company formerly known as Twitter $33 billion in equity and debt. As X repeatedly on the brink of bankruptcy, the deal has a mark of bailout, as Twitter is worth $11 billion less than when Musk bought it.
according to Bloombergcatching up with competitors like Openai and the crowd competition in the AGI competition is not cheap for Xai. The startup is expected to burn through about $13 billion in cash This year. Musk seems Rejection report When published last month, it claimed that “Bloomberg is talking nonsense”, although he did not specify what was incorrect.
Where is the update @Grok It happened on July 8th.
First, we deeply apologize for the horrible behaviors many have experienced.
Our Intention @Grok It is to provide users with a beneficial and authentic response. After careful investigation, we found the root cause… – grok (@grok) July 12, 2025
Just two weeks later, Xai raised $10 billion in new capital With help of Morgan Stanley (SpaceX’s investment is reportedly part of it). This is unusual for high-growth tech startups, with half of them coming from the debt market where investors attach explicit strings to the loan to repay balance plus interest.
Groke’s anti-Semitic riot prompts apology “terrible behavior”
Nothing went smoothly at Grok. Musk’s AI chatbot left the railroad track last week, spreading many anti-Semitic conspiracy theories on X while proudly proclaiming itself as Mechanized version of Nazi leader Adolf Hitler.
only one day After the latest Reputation scandal Devour her advertising-dependent platform X CEO Linda Yaccarino Resign From her post. On Saturday, Xai was forced to demand forgiveness.
“We deeply apologize for the horrible behavior many people have experienced,” the official Grok note on X Posted This weekend.
Tesla’s last investment in another company that saw Musk as its biggest shareholder was widely criticized 2016 transaction Buy solar for $2.6 billion. Investors use this deal challenge as a bailout, Musk eventually gains the upper hand Two years ago In a case that went all the way to the Delaware Supreme Court.
However, AI is a very different shareholder value proposition compared to solar roofs, and many investors argue that it supports buying equity.
“We believe that Tesla’s massive investment in XAI is an important step forward,” Wedbush analyst Dan Ives Write on Monday.
