'Should Tesla invest $7.5 billion in xAI?' Elon Musk asks in survey, 67.9% vote in favor


By

Thomas Hawk

Elon Musk, owner of companies such as Tesla, SpaceX, Neuralink, and X (formerly Twitter), conducted a survey on X asking his followers whether Tesla should invest $5 billion (approximately 764 billion yen) in his AI startup xAI. The survey ended with a majority of respondents saying yes, with more than two-thirds saying yes.

Elon Musk wants Tesla to invest $5 billion into his newest startup, xAI — if shareholders approve
https://www.cnbc.com/2024/07/24/elon-musk-wants-tesla-to-invest-5-billion-into-his-newest-startup-xai-if-shareholders-approve.html

Musk's Poll Shows Most Want Tesla to Invest $5 Billion in xAI - Bloomberg
https://www.bloomberg.com/news/articles/2024-07-24/musk-asks-x-followers-if-tesla-should-sink-5-billion-into-xai

Below is a survey posted by Musk on X asking whether Tesla should invest in xAI. Musk asked his followers, 'Should Tesla invest $5 billion in xAI, assuming the valuation is set by multiple trusted outside investors?'



Musk noted that this is merely preliminary research, as Tesla is a publicly traded company and any investment would require approval from the board and shareholders.

The survey, which was open for about a day, saw 958,086 people vote, with 67.95% voting in favor.

The vote came shortly after Tesla's second-quarter 2024 financial results , released on July 23, 2024, showed disappointing results, with the company's bottom line down 45% from the same period last year and earnings per share falling short of market expectations for the fourth consecutive quarter.

Tesla's shares fell by more than 7% in after-hours trading due to a sharp decline in earnings from its core automotive division and a weak overall performance. However, investors continue to show strong interest in its energy storage business, which has made great strides, and its futuristic businesses, such as robot taxis and humanoid robots, which are currently under development.


by Tesla, Inc.

During the investor call, Musk was asked if Tesla plans to invest in xAI or integrate its chatbot, Grok , into Tesla's software.

In response, Musk said, 'Tesla is learning a lot from xAI. In fact, xAI is helping Tesla develop fully autonomous driving and build new data centers. I think we need shareholder approval to invest in xAI, but if shareholders approve it, of course I'm in favor,' he said, showing a positive attitude.

Musk has previously pooled resources between his companies. For example, SpaceX bought a large advertising campaign from Twitter shortly after Musk acquired the company to advertise Starlink.

SpaceX is buying up Twitter's ad space - GIGAZINE



Musk's tunnel-boring company, The Boring Company, signed a $1 million contract with Tesla to dig a tunnel for Tesla's factory in Texas, but sources familiar with the matter said the tunnel was just to get the Cybertruck from the end of the production line to the other side of the road that runs through the factory grounds.

The $5 billion investment figure Musk mentioned this time was not announced in Tesla's financial results report or investor conference, so it is unclear how the amount was calculated or how it will be used. Financial news media Proactive predicted that 'Tesla's $5 billion investment will likely be used to add more GPU clusters to make xAI's Grok more powerful.'

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