Tesla shareholders will vote on November 6 on whether the automaker should invest in Elon Musk’s AI startup, xAI. The proposal, submitted by Florida shareholder Stephen Hawk, argues that integrating with xAI could boost Tesla’s AI, robotics, and energy ambitions, citing the integration of Grok into Tesla vehicles as proof of synergy.
Unlike most shareholder proposals, Tesla’s board is taking a neutral stance. If approved, Tesla would join SpaceX, which has already pledged $2 billion to xAI. Some investors, however, view xAI as a rival, given Musk’s repeated claims that Tesla itself is an AI company.
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The vote comes as Tesla faces slowing EV sales and a delayed robotaxi rollout. Alongside the xAI proposal, shareholders will also decide on a Tesla-backed 10-year compensation plan for Musk that could give him more than 25% control of the company. The new package replaces a $56 billion pay deal struck down in Delaware court and ties Musk’s compensation to ambitious growth targets, including raising Tesla’s valuation above $8 trillion.
