Tesla shareholders reject $5B investment in Elon Musk's AI startup
Tesla shareholders just voted down a shareholder proposal for the company to invest $5 billion in Elon Musk's AI startup, xAI, which Musk supported.
The vote was close—over a billion shares backed the plan—but Tesla rules counted nearly half a billion abstentions as "no."
Even though this vote isn't binding, Tesla's board says they'll keep the strong support in mind when deciding what comes next.
Not every Musk project fits with Tesla's core mission
xAI is already teaming up with Tesla—using its Megapack batteries and bringing Grok (xAI's chatbot) into Tesla cars.
But board chair Robyn Denholm pointed out that xAI's tech doesn't really match Tesla's focus on real-world AI for cars and energy.
As their official statement put it, not every Musk project fits with Tesla's core mission, so the board is being careful about where to invest.