Elon Musk Wants Tesla To Invest In xAI, But It's Up To Shareholders: This Analyst Says Grok Is Worth The Bet

Tesla Inc. TSLA CEO Elon Musk has made it clear he wants the company to invest in his artificial intelligence startup, xAI — but says the final decision is now in shareholders’ hands.

What Happened: Responding to a post on X, formerly Twitter, Musk said, "It's not up to me. If it was up to me, Tesla would have invested in xAI long ago. We will have a shareholder vote on the matter."

The statement follows a Wall Street Journal report that another Musk-led company, SpaceX, is preparing to invest $2 billion into xAI, the maker of the Grok chatbot.

Following Musk's statement, Gene Munster, managing partner at Deepwater Asset Management, quickly weighed in, saying, "If Tesla's future is autonomy, then Tesla investors and the board should support the investment."

"xAI can help power that future either as a partner or part of Tesla. The faster they can get cash, the higher the odds of success for both companies."

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Why It's Important: xAI was founded in 2023. In March, it was acquired Musk's social media platform X.

In late June, Morgan Stanley revealed that xAI secured a $5 billion debt financing round along with an additional $5 billion strategic equity investment. This effort is part of the startup's plan to strengthen its AI infrastructure with new data centers as competition intensifies.

Last week, after xAI announced the launch of Grok 4, Musk also confirmed in a reply to Tesla influencer Sawyer Merritt that Grok will be available in Tesla vehicles very soon, likely by this week.

Benzinga’s Edge Stock Rankings indicate that TSLA is trending downward in the short term but continues to show positive momentum over the medium and long term. The stock has a solid growth score, although its value rating is relatively lower. You can find more detailed performance insights here.