Elon Musk has explicitly stated that he does not support a merger between Tesla, his electric vehicle company, and xAI, his artificial intelligence startup that developed the Grok chatbot. This decision comes after a user asked Tesla investors about their stance on a potential merger between the two companies, to which Musk replied, "No".
Despite his opposition to a merger, Musk plans to ask Tesla shareholders to vote on whether the company can invest in xAI. Earlier, Musk had mentioned that it would be "great" if Tesla could invest in xAI. xAI has been making significant moves, including acquiring X (formerly Twitter) in a $33 billion deal and reportedly raising money at a valuation of over $120 billion, with some discussions reaching as high as $200 billion.
SpaceX, another Musk-owned company, has committed $2 billion to xAI as part of a $5 billion equity round, further solidifying the connection between Musk's ventures. The relationship between Tesla and xAI continues to evolve, with Musk's recent statement providing clarity on his current stance regarding a merger.
