Tesla shareholders rejected the proposal for the company to invest in the startup xAI, owned by Elon Musk. During the voting, 1.06 billion shareholders voted “for,” 916.3 million voted “against,” and over 473 million abstained, which, according to the company’s charter, is equivalent to votes “against.” Therefore, the initiative was not supported.
This is reported by Finway
Reasons for Rejection and Tesla Management’s Position
The Tesla Board of Directors emphasized that the final decision would take into account the level of shareholder support, as the proposal was advisory in nature. The company’s Chief Legal Officer, Brandon Erhart, noted that the rejection does not mean a complete ban on collaboration with xAI, but requires a more careful analysis of potential actions.
“The decision does not prohibit the company from interacting with xAI, but requires a cautious approach.”
According to Chairwoman Robin Denholm, Tesla is focusing on practical technologies for the transportation and energy sectors, while xAI is concentrating on global artificial intelligence issues.
Tesla and xAI Interaction: Current Status and Prospects
Elon Musk has repeatedly expressed support for investments in his artificial intelligence startup, estimating potential contributions from Tesla at $5 billion. At the same time, there is already collaboration between the companies: xAI has invested nearly $200 million in purchasing Tesla Megapack battery systems, and the xAI-developed chatbot Grok is integrated into Tesla vehicles.
In a corporate statement, Tesla emphasized that Musk’s projects do not always align with the company’s mission, so using its resources for external initiatives may be impractical. Meanwhile, market experts note the potential of xAI technologies in the field of autonomous solutions and robotics.
Investments in xAI could further enhance Musk’s influence over the ecosystem of his businesses. It is worth noting that SpaceX is already an investor in xAI, and integration with the social network X (formerly Twitter) allows for the use of its content to train artificial intelligence and promote the Grok chatbot.
Over the past year, xAI has managed to raise up to $20 billion for infrastructure development—specifically for building data centers and developing specialized chips.
Previously, Tesla shareholders supported a new compensation package for Elon Musk, which could provide him with up to $1 trillion in company stock.