What did Musk say about a merger between Tesla and xAI?

Musk ruled out a merger between Tesla and xAI, stating he would hold a shareholder vote regarding investment in the artificial intelligence startup.

How much is SpaceX planning to invest in xAI?

SpaceX is planning to invest $2 billion in xAI as part of a larger $5 billion funding round.

What is the purpose of the investment in xAI?

The investment into xAI aims to enhance Grok's capabilities to better compete with OpenAI's ChatGPT by increasing capital for research and development.

When is Tesla's annual shareholder meeting scheduled?

Tesla's annual shareholder meeting is scheduled for November 6.

What is Grok and how is it related to Tesla?

Grok is xAI's chatbot that is being integrated into Tesla vehicles, showcasing the close ties between Musk's companies.

Editorial & Advertiser disclosure

Global Banking & Finance Review® is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Home > Finance > Musk suggests Tesla investor vote on xAI investment, rules out merger

Finance

Musk suggests Tesla investor vote on xAI investment, rules out merger

Published by Global Banking & Finance Review®

Posted on July 14, 2025

2 min read

Last updated: January 22, 2026

Musk suggests Tesla investor vote on xAI investment, rules out merger - Finance news and analysis from Global Banking & Finance Review

Musk Proposes Tesla Shareholder Vote on xAI Investment, No Merger

(Reuters) -Elon Musk ruled out a merger between Tesla and xAI but said he plans to hold a shareholder vote on investment in the artificial intelligence startup by the automaker, in the latest step to deepen integration across his business empire.

His comments followed a Wall Street Journal report on Saturday that SpaceX, Musk's rocket firm, will invest $2 billion in xAI as part of a $5 billion funding round aimed at keeping pace with rivals, including OpenAI in the capital-intensive AI race.

Musk, Tesla and xAI have not responded to Reuters requests for comment.

The billionaire's companies already share close ties. XAI's Grok chatbot is rolling out to the automaker's vehicles, and Tesla engineers assisted Musk after his 2022 buyout of Twitter, the social media platform now known as X.

Responding to a user post on X asking Tesla investors if they supported a merger between the two companies, Musk on Monday replied "No." He had said on Sunday he would ask Tesla shareholders to vote on whether the automaker can invest in xAI.

"If it was up to me, Tesla would have invested in xAI long ago," Musk had said on X, having previously signaled that close ties between the companies could help advance Tesla's autonomous-driving ambitions.

Integrating technology, talent and financial backing is a theme that runs across Musk's empire of companies. Earlier this year, xAI acquired Musk's X in a $33 billion deal that valued the combined group at $80 billion at the time.

That deal meant the X platform would come in handy to further distribute xAI products, while also providing a real-time feed of users' posts, screenshots and massive amounts of other data.

Investments into xAI would help Grok better compete with OpenAI's ChatGPT by increasing capital toward research and development.

xAI recently launched Grok 4, its latest flagship AI model. While Musk has touted it as "the smartest AI in the world," Grok still lags ChatGPT in terms of usage.

Tesla had last week said it was planning to hold its annual shareholder meeting on November 6, setting the date a day after a group of 27 investors pushed for it, citing legal obligations.

(Reporting by Deborah Sophia and Gnaneshwar Rajan in Bengaluru; Editing by Mrigank Dhaniwala and Arun Koyyur)

Musk suggests Tesla investor vote on xAI investment, rules out merger

Quick Summary

Musk Proposes Tesla Shareholder Vote on xAI Investment, No Merger

Key Takeaways

Frequently Asked Questions about Musk suggests Tesla investor vote on xAI investment, rules out merger