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Tesla told investors on Friday it has received a series of shareholder proposals focused on the company’s interest in funding Elon Musk’s artificial intelligence firm, xAI. This comes after Elon confirmed earlier this month that Tesla will not merge with xAI but may still invest in it, leaving the final decision up to a shareholder vote. The proposals come as concern grows over Tesla’s corporate direction, especially with xAI now tangled in government contracts, public controversies, and internal politics. According to Reuters, xAI has been pulling in major funding this year, $5 billion in debt and another $5 billion in equity, both reported by Morgan Stanley. Elon has also kept xAI closely tied to his other companies. In March, he folded the social media company X into xAI in a $33 billion deal, saying it would improve chatbot training. Since then, Tesla cars have started shipping with xAI’s chatbot Grok installed. This level of crossover between Elon’s businesses has left shareholders questioning whether Tesla’s cash should be involved. The company said it will hold its annual meeting on November 6, and that only one proposal per topic will be included in its proxy materials, in line with SEC guidelines. The cutoff date for submission is July 31. While speaking on Tesla’s most recent earnings call, Elon addressed the submissions: “Shareholders are welcome to put forward any shareholder proposals they’d like.” Tesla’s stock is already down 22% this year, and analysts point to Elon’s political visibility as one of the reasons behind it. That pressure is now amplified by the questions surrounding xAI’s reputation and government connections. Just last week, the Pentagon confirmed new contracts with four AI companies. The names included OpenAI, Google, Anthropic, and, unexpectedly, xAI. The Pentagon said these multimillion-dollar deals are part of an effort to address…

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Filed under: News - @ July 26, 2025 9:21 am