Tesla shareholders will soon have a say in whether the EV giant should invest in xAI, Elon Musk’s fast-growing artificial intelligence startup.
The news was confirmed by Tesla’s official X account, noting that the proposal will be put to a vote during the company’s annual shareholder meeting this November. According to Tesla, several shareholder proposals regarding a potential xAI investment have already been submitted. Under SEC rules, the proxy statement for the meeting will include one properly submitted proposal per topic, and the original proposer will be invited to attend the meeting in person.
This development comes just weeks after Musk’s other company, SpaceX, reportedly finalized a $2 billion investment in xAI — a sign of deepening synergy between Musk’s ventures. Since its launch in 2023, xAI has been on a rapid growth trajectory. Earlier this year, the startup officially merged with Musk’s social media platform X, uniting their AI efforts under one umbrella.
Most recently, xAI unveiled Grok 4, the latest version of its conversational AI, which started rolling out to Tesla vehicles with the 2025.26 software update earlier this month. Grok 4 powers voice-based interactions inside your Tesla, with the potential to eventually enhance the Full Self-Driving (Supervised) experience.
Rumors of a future merger between Tesla and xAI have also been swirling for months, especially following comments from Musk biographer Walter Isaacson suggesting it’s “going to happen.”
As Tesla prepares for its shareholder meeting, investors will be weighing the strategic and financial merits of a stake in xAI — especially as the lines between Musk’s companies continue to blur. Tesla currently faces significant investor pressure after a pretty disappointing second quarter, with shares falling over 8% since it reported declining revenue in its Q2 earnings release earlier this week.
