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Tesla invests $2 billion in Elon Musk's xAI
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Tesla has disclosed a $2 billion investment in Elon Musk's AI company xAI, part of its Series E funding round, despite ongoing shareholder lawsuits and a rejected nonbinding vote. The move aims to foster AI collaborations under Tesla's Master Plan Part IV. The investment, made on market terms, is expected to close in the first quarter of 2026.
Tesla shareholders are set to vote on November 6, 2025, on a proposal urging the board to invest in Elon Musk's xAI startup. The move comes amid lawsuits accusing Musk of breaching fiduciary duty by launching the competing AI company. Proponents argue it could yield financial returns and technological benefits for Tesla.