Tesla shareholders did not support the proposal for the company to invest in xAI, Elon Musk’s artificial intelligence startup. As a result of the voting, despite 1.06 billion votes in favor and 916.3 million against, over 473 million abstentions became decisive, as under the company’s charter they are counted as votes against. Consequently, the initiative was not approved.
This is reported by Business • Media
Differences in Approaches Between Tesla and xAI
The Tesla Board of Directors stated that it would consider the level of shareholder support when determining further actions, as the initiative was advisory in nature. Tesla’s Chief Legal Officer, Brandon Erhart, emphasized that this decision does not prohibit the company’s collaboration with xAI, but obliges it to adhere to a more cautious strategy in this direction.
“The Tesla Board of Directors states that it will consider further steps based on the level of shareholder support, as the initiative was advisory in nature.”
Elon Musk himself actively supported investments in xAI, estimating the potential funding volume at $5 billion. Currently, xAI is already collaborating with Tesla: the company has spent about $200 million on acquiring Tesla Megapack battery systems, and the Grok chatbot has been integrated into the automaker’s vehicles.
Technological Integration and Strategic Prospects
In its proxy statement, Tesla noted that some of Musk’s projects may not align with the company’s core mission, and utilizing Tesla’s resources for their implementation may be impractical. Meanwhile, experts highlight the significant potential of xAI technologies in the areas of autonomous decision-making and robotics.
Tesla’s Chairwoman, Robyn Denholm, emphasized that the company focuses on practical solutions for transportation and energy, while xAI addresses global challenges in artificial intelligence.
Tesla’s investments in xAI could strengthen Musk’s influence over the ecosystem of his companies. At the same time, SpaceX is already an investor in xAI, and integration with the social network X, owned by Musk, allows for the use of its data for training models and disseminating the Grok chatbot.
Over the past year, xAI has raised about $20 billion for infrastructure development, including the construction of data centers and the procurement of specialized chips for AI.
Additionally, Tesla shareholders recently approved a new compensation package for Elon Musk, the potential value of which could reach $1 trillion in the form of company stock.