Tesla shareholders will vote this November on a proposal urging the company to invest in Elon Musk’s AI startup, xAI, as part of ongoing discussions about the automaker’s long-term strategy.
The proposal, submitted by Stephen Hawk, a 56-year-old psychiatrist and long-time Tesla investor, highlights growing shareholder interest in aligning Tesla’s resources with Musk’s broader AI ambitions.
Hawk leads shareholder proposal
Stephen Hawk, who has owned multiple Tesla vehicles since 2013, including two Model S, four Model 3s, and a Cybertruck, is spearheading the proposal.
Hawk, a superfan of Musk and an active figure in Tesla’s shareholder community, submitted the proposal following Musk’s public encouragement for Tesla investors to consider backing xAI.
“My commitment to Tesla comes from experience of owning multiple vehicles since 2013 and a Tesla solar roof, and particularly inspired by the genius of Elon Musk,” Hawk said in an email to WSJ.
Hawk’s proposal requests the Tesla board to authorize an investment in xAI “in an amount and form deemed appropriate,” leaving the specifics to the board’s discretion.
While Tesla advised shareholders against supporting nine other proposals in its recent proxy filing, no guidance was issued regarding the xAI investment. Shareholders will vote on all proposals at the company’s annual meeting on November 6.
Hawk is no stranger to the Tesla community.
He has posted selfies from Tesla events with figures such as Sawyer Merritt and Alexandra Merz, known as Tesla Boomer Mama, and even proposed to his husband at a Tesla store in Tampa, Florida.
His submission was reportedly one of around 140 shareholder proposals supporting the cross-company investment in late July.
Tesla and xAI collaboration already underway
The proposed investment reflects a broader ongoing relationship between Tesla and xAI.
Currently, the two companies collaborate on the Grok AI companion, integrated into some Tesla vehicles as a voice assistant.
xAI also purchases industrial batteries from Tesla to power its data center, and Grok is integrated into Tesla’s Optimus humanoid robot.
Elon Musk, CEO of both Tesla and xAI, has openly supported Tesla investing in xAI.
Last year, he ran a poll on X to gauge public sentiment and has encouraged shareholders to submit proposals to formalize the partnership.
Musk has stated, “We’ll act in accordance with the shareholder wishes,” signaling his readiness to support the investment if approved.
The potential investment comes amid scrutiny over Musk’s divided attention across multiple companies.
Some observers have questioned whether xAI’s focus on artificial general intelligence could conflict with Tesla’s work on “real-world AI” for autonomous vehicles and robotics.
Hawk and other proponents see an investment as a way to ensure Tesla shareholders benefit from Musk’s AI ventures outside the automaker.
Tesla’s market strength and shareholder interests
Despite challenges to its automotive business, Tesla has maintained strong stock performance, fueled by investor optimism around its robotaxi rollout and broader growth plans.
With a market capitalization exceeding $1.2 trillion—roughly four times that of Toyota—Tesla remains one of the world’s most valuable automakers.
Hawk believes formalizing a Tesla-xAI investment is essential to securing mutual benefits and aligning shareholder interests with Musk’s AI ambitions.
SpaceX, another Musk-led company, recently invested $2 billion in xAI as part of a $5 billion fundraising round, highlighting the broader ecosystem of Musk-backed AI projects.
The shareholder vote in November will determine whether Tesla formally joins this effort.
The post Tesla shareholder pushes board to invest in Elon Musk’s xAI appeared first on Invezz
