During Tesla's recent earnings call, Elon Musk confirmed that the decision regarding investments in his startup xAI will be left to the shareholders.
Tesla Shareholders and Investment in xAI
During the earnings call, Elon Musk stated that Tesla shareholders are welcome to put forward any proposals regarding investments in xAI. "Shareholders are welcome to put forward any shareholder proposals they'd like," he mentioned. Musk clarified that the decision is not solely up to him: "It’s not up to me."
xAI's Relationship with Tesla
Founded in 2023 by Musk, xAI has yet to make significant progress in the competitive AI field, unlike competitors like OpenAI. Its main product, the chatbot Grok, aims to integrate with X. Despite challenges, xAI already has a partnership with Tesla, acquiring Megapack systems. Musk believes Tesla shareholders should have exposure to AI as it develops.
Concerns About Tesla's Governance
Musk faces criticism over managing multiple companies simultaneously. Tesla shareholders have previously voted on controversial proposals, such as the purchase of SolarCity. The current question is whether supporting Musk's new ventures is prudent without clear benefits for shareholders.
Should Tesla shareholders formally propose an investment in xAI at the upcoming meeting, it could mark a significant chapter in Tesla's strategy and strengthen ties with Musk's AI ambitions.
