Tesla shareholders will get to decide this fall whether the company should make a strategic investment in xAI, Elon Musk’s fast-growing artificial intelligence startup.
Outlined in Tesla’s newly filed 2025 proxy statement, the proposal will go to a shareholder vote at the company’s annual meeting on November 6. It was first confirmed back in July, when Tesla said it would put the decision directly to investors after multiple shareholder proposals were submitted.
The proxy statement includes the following proposal:
“Now, therefore, be it resolved, that the shareholders of Tesla, Inc. request that the Board of Directors authorize an investment in xAI, in an amount and form deemed appropriate by the Board, to capitalize on the synergies between the two companies and strengthen Tesla’s position as a leader in AI, robotics, and energy.”
The Board of Directors has made no recommendation on how shareholders should vote.
Tesla has already begun integrating xAI’s technology into its products, most notably the Grok AI assistant, which started rolling out to vehicles with the 2025.26 software update. Grok powers voice-based interactions and could eventually enhance the Full Self-Driving (Supervised) experience. Supporters of the proposal argue that a direct investment would deepen these synergies, secure access to advanced AI capabilities, and further strengthen Tesla’s leadership in robotics and energy optimization.
This wouldn’t be the first case of cross-pollination between Musk’s ventures. In July, SpaceX reportedly finalized a $2 billion investment in xAI, following the startup’s merger with Musk’s social media platform X earlier this year. Rumors of a potential Tesla–xAI merger have also circulated for months, fueled by comments from Musk biographer Walter Isaacson suggesting it’s “going to happen.”
The xAI vote will unfold alongside Tesla’s other major shareholder proposals this fall, including an unprecedented $1 trillion compensation plan for Musk. With Tesla under investor pressure to deliver on its ambitious promises amid underwhelming EV sales, shareholders will be weighing both decisions closely.
