Tesla shareholders will soon vote whether to get electric car manufacturers to invest in Elon Musk’s AI startup XAI, a proposal that is a way to enhance Tesla’s ambitions in AI, robotics and energy.
Listed in Tesla Agent statement A salary increase with company-supported efforts Musk’s 10-year salary package to $1 trillionThe proposal comes from Florida shareholder Stephen Hawk, which owns $2,000 in common stock. His statement of support reads:
Tesla integrates the Grok into its vehicles, demonstrating the tangible benefits of working with XAI. As Tesla turns to AI-powered technologies, including complete autonomous driving and robotics, strategic investment in XAI will ensure access to advanced AI capabilities, enhance product innovation and drive shareholder value.
The board of directors often recommends investors to vote on shareholder proposals, which is neutral.
If Tesla does end up investing in XAI, it will be Musk’s second company. Musk aerospace company SpaceX has pledged to invest xai $2 billion As part of a $5 billion stake. Analysts speculate that SpaceX’s involvement in XAI may indicate that AI companies are raising trouble from outside investors. (Musk also merged X, formerly known as Twitter, with Xai Earlier this year)
Some Tesla shareholders believe that Xai is a rival to Tesla, as Musk often describes his electric car company as an AI company. last year, Shareholders sue Musk The company allowed Musk to start rival AI companies, but the case was dismissed.
Hawke’s proposal comes as Tesla’s efforts to undercut electric vehicle sales and boring Robotaxi promotions. The company is trying to shift investors’ focus from these counter-trends to Tesla’s AI efforts, which focus on self-driving cars and Optimus Prime that test and deploy its humanoid robots.
Musk believes he needs to control more of Tesla’s stake to lead the company’s AI efforts rather than being distracted by his other AI company. In addition to the proposal to invest in XAI, shareholders will vote on Tesla-backed Musk’s 10-year compensation plan, which could give him more than 25% control.
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The document comes as Tesla continues to appeal the Delaware judge’s decision to reduce Musk’s early $56 billion compensation package. The new plan links Musk’s compensation to an ambitious benchmark, including increasing Tesla’s market value from $1 trillion today to more than $8 trillion.
“Tesla isn’t going to have a market cap of $8 trillion based on FSD and Robotaxi. To reach $8 trillion, you need Xai,” Gene Munster, managing partner at Deepwater Asset Management, told TechCrunch. “We’re talking about unthinkable numbers in history. To understand these numbers, what we need to happen is now unthinkable. One of them is humanoid robots everywhere; that’s probably the biggest leverage.”
Investors point out that XAI can help Tesla reach its market value in a variety of ways.
“Only the excitement of Xai and Tesla will increase Tesla’s valuation,” he said, adding that the potential returns of the investment and access to Xai resources such as Compute may help increase shareholder value and Tesla’s own AI ambitions.
Tesla’s shareholder vote is scheduled to be held on November 6 at 3pm Central Time on Tesla’s Gigafactory Texas and will be broadcast live here.
