Musk rejects merger between Tesla and xAI

Elon Musk owns X, xAI and Tesla and is contemplating the future business relationship between them all.

Elon Musk rejects merger between Tesla and xAI

Elon Musk announced on Monday that he does not support a merger between xAI and Tesla. This statement follows a poll on the social media platform X, where Tesla investors were asked about their views on such a merger. Musk replied simply with "No." This comes amid discussions about the relationship between his companies and potential investments. He hinted that a shareholder vote could occur to decide if Tesla should invest in xAI. Last year, a majority of participants in a similar poll supported a $5 billion investment in xAI. Recently, Musk highlighted that xAI's chatbot, Grok, will soon be available in Tesla vehicles, despite criticism surrounding the chatbot's controversial remarks.

Musk's refusal to merge Tesla and xAI raises questions about his broader strategy for integrating his various companies. While last year's positive poll indicated investor enthusiasm for xAI investment, Musk's current stance seems to signal a cautious approach. The negative attention surrounding Grok, particularly its antisemitic comments, complicates Tesla's public image, especially as Musk seeks to blend AI technology with automotive innovation. Investors will watch closely to see how these decisions affect the future of both companies.

Highlights

Musk's next steps may significantly shape the landscape of AI in the automotive sector.