Shareholders of Tesla are gearing up to vote on whether the company should invest in xAI, Elon Musk’s burgeoning artificial intelligence startup.
Confirmation of this development came from Tesla’s official X account, which announced that the proposal will be presented for voting at the upcoming annual shareholder meeting in November. Multiple shareholder proposals related to a potential xAI investment have already been submitted. As per SEC regulations, the proxy statement for the meeting will feature one properly submitted proposal per topic, with the original proposer being invited to attend the meeting in person.
This development follows closely on the heels of SpaceX, another company owned by Musk, finalizing a $2 billion investment in xAI recently — indicating a deepening collaboration between Musk’s enterprises. Since its inception in 2023, xAI has been experiencing rapid growth. Earlier this year, the startup officially merged with Musk’s social media platform X, consolidating their AI endeavors under a single entity.
Most notably, xAI introduced Grok 4, the latest iteration of its conversational AI, which began rolling out to Tesla vehicles with the 2025.26 software update earlier this month. Grok 4 powers voice-based interactions within Tesla vehicles, with the potential to enhance the Full Self-Driving (Supervised) experience in the future.
Speculations about a potential merger between Tesla and xAI have been circulating for some time, particularly following comments from Musk biographer Walter Isaacson hinting at an imminent merger.
As Tesla readies for its shareholder meeting, investors will be evaluating the strategic and financial benefits of investing in xAI — especially as the boundaries between Musk’s companies continue to blur. Tesla is currently facing significant investor scrutiny following a lackluster second quarter, with shares declining over 8% since it posted a drop in revenue in its Q2 earnings report earlier this week.