Tesla shareholders to vote on investing in Musk’s AI startup xAI

Tesla shareholders are set to vote on a proposal to allow the company to invest in Elon Musk’s AI startup, xAI, which is positioned as a strategic move to bolster Tesla’s AI, robotics, and energy initiatives. The proposal, initiated by a shareholder with a modest stake, highlights Tesla’s recent integration of xAI’s Grok AI into its vehicles and argues that investing in xAI would secure advanced AI capabilities, drive innovation, and enhance shareholder value. Notably, Tesla’s board has taken a neutral stance on the proposal, which follows SpaceX’s commitment to invest in xAI amid speculation that the AI startup is struggling to secure outside funding. Some shareholders have expressed concerns that xAI could compete with Tesla, given Musk’s framing of Tesla as an AI company, though a related lawsuit was dismissed last year. This vote coincides with Tesla’s broader efforts to shift investor focus from challenges such as declining EV sales and a slow robotaxi rollout toward its AI ambitions, including autonomous vehicles and the