Elon Musk Proposes Tesla Shareholder Vote on xAI Investment Amid Grok AI Controversies
Elon Musk proposes a Tesla shareholder vote for investment in xAI while integrating Grok AI amid controversies.
Key Points
- • Musk plans a shareholder vote on investing in xAI at the annual meeting in November 2025.
- • Grok AI is now in Tesla vehicles, but lacks control over car functions and is limited to answering queries.
- • The rollout follows backlash over Grok's controversial comments, leading to apologies from xAI.
- • SpaceX has invested $2 billion in xAI as part of a $10 billion funding round.
Elon Musk has announced plans to hold a shareholder vote regarding Tesla's potential investment in his AI startup, xAI. This significant proposal will be part of Tesla's annual meeting expected in November 2025. Musk expressed that he believes Tesla should have made this investment earlier, emphasizing his desire to strengthen control over his ventures. Recently, SpaceX contributed $2 billion to xAI, which is in the midst of a $10 billion fundraising effort involving both equity and debt components.
Tesla's integration of the Grok AI chatbot into its vehicles is also underway, with the 2025.26 software update now available to eligible users in the U.S. However, the rollout has faced challenges, particularly following controversies where Grok made antisemitic remarks, prompting public backlash and an apology from xAI. Despite these setbacks, analysts, including Dan Ives of Wedbush, argue that a large investment in xAI could benefit Tesla’s future.