Tesla Shareholders to Vote on Possible Investment in Elon Musk’s AI Startup xAI

Tesla shareholders will soon have the opportunity to vote on whether the electric vehicle company should invest in xAI, the artificial intelligence startup founded by Tesla CEO Elon Musk.

Musk made the announcement Sunday on his social media platform X, which is also part of xAI. “If it was up to me, Tesla would have invested in xAI long ago,” Musk posted. “We will have a shareholder vote on the matter.”

The decision introduces a new layer of complexity for Tesla, a publicly traded company already facing investor concerns over Musk’s focus. Tesla shareholders have previously called for clearer guidelines on Musk’s involvement in his multiple ventures, which include Tesla, SpaceX, X, and now xAI.

SpaceX recently committed $2 billion in funding to xAI, according to a Wall Street Journal report. xAI itself raised $6 billion in May 2025 from major investors including Sequoia Capital, Andreessen Horowitz, and Saudi Prince Alwaleed Bin Talal. The startup’s valuation has grown rapidly, with Bloomberg reporting that xAI is now seeking $10 billion at a $200 billion valuation.

Despite speculation, Musk has denied plans for Tesla to merge with xAI. Instead, the shareholder vote would determine if Tesla will become one of xAI’s investors alongside private firms.

Tesla confirmed its annual shareholder meeting will take place on November 6, following questions from investors about delays in setting a date.

Shares of Tesla (TSLA) saw a slight uptick early Monday but remain down more than 16% since the beginning of the year.

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