Elon Musk has firmly excluded a merger between Tesla and its XAI artificial intelligence company, even though it pushes to deepen the integration between the manufacturer of electric vehicles and its growing empire of technological technologies.
The billionaire made the declaration in response to a post in the X @bullstreetbets_ account, which asked Tesla investors if they supported a merger with XAI. Musk’s response was brief but direct: “No.”
His commentary arises in the middle of the speculation renewed on the way in which Tesla and Xai will be closely linked to the future. During the weekend, Musk suggested that Tesla shareholders would soon vote to find out if the car manufacturer should invest directly in XAI, the AI startup that he founded in July 2023 to challenge the domination of Openai and Google Deepmind.
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He insisted that the decision would not be his. “It is not mine. If it was me, Tesla would have invested in Xai a long time ago,” he wrote on X, confirming the plans for a shareholder vote, although he did not say when it would happen.
The latest comments highlight Musk’s attempt to walk between consolidating influence in its companies and respecting Tesla’s governance structures listed on the stock market. However, Tesla’s criticisms and certain shareholders are increasingly suspicious of Musk’s growing attention on XAI, the warning could lead to a diversion of attention and resources far from Tesla’s main activities.
While Musk said he did not support a merger, he continued to strategically link the two companies. Last week, Musk announced that Tesla vehicles will soon start managing XAI’s Grok chatbot via the vehicle infotainment system, marking a major product integration between the two companies.
This announcement occurred shortly after Musk confirmed that another of its companies, Rocket Builder Spacex, is preparing to invest $ 2 billion in the XAI as part of a collection of funds of $ 10 billion to extend the IA infrastructure of the startup. According to the Wall Street Journal, the investment includes both debt and equity and will be used to build data centers and improve Grok’s capacities. Musk confirmed the SpaceX investment via a position on X, declaring that it would be “brilliant”, but said that it would always require the approval of the Commission and the shareholders.
The relationship between Musk – Tesla, SpaceX, X (formerly Twitter), XAI, The Boring Company and Neuralink – caught growing attention for what initiates have nicknamed “muskomie”, a network of interconnected companies that share technology, staff, and now more and more, financial support.
XAI, valued at $ 80 billion during a merger of March 2025 with X, became central to Musk’s vision. He markets Grok as “the most intelligent AI to date”, an affirmation which comes despite an increasing criticism of the behavior of the chatbot. In recent weeks, Grok has made the headlines to generate anti -Semitic content and rent Adolf Hitler, which has caused indignation and a public exam. XAI has apologized for incidents, describing them as “horrible behavior” and promising reforms to tighten the guarantees.
Despite the backlash, Xai took ahead and Musk continues to defend Grok. The startup launched Grok 4 last week, which is hailed as intelligent. He received more than $ 12 billion in funding thanks to a mixture of Tours A, B and C and continues to build the required infrastructure to take charge of large -scale AI models. Its declared objective is to take major competitors such as Openai and Anthropic, who have also recently launched new border models with ambitions to dominate the next wave of AI development.
In this race, the capital is essential. Morgan Stanley, who directed the recent financing thrust of $ 10 billion for XAI, told investors that the company should generate $ 1 billion in income by the end of this year and more than $ 13 billion per year by 2029. Funding would be used to build massive data centers capable of supporting Grok and future models.
Musk’s comments suggest that if a merger between Tesla and Xai is out of the table, their strategic alignment will continue to deepen thanks to shared technology, the integration of products and a potentially important cross -investment – the consent of pending shareholders.
For musk, loyalty among the investors of its companies is essential. In a June article, he declared that he would favor “the shareholders of my other companies, including Tesla”, if one of his companies should become public, adding that “loyalty deserves loyalty”.
While the lines continue to blur between Musk’s Ventures, Tesla shareholders are now ready to play a central role by deciding how the automotive manufacturer should be linked to the AI ambitions of the billionaire. While some investors remain skeptical, others are betting that XAI’s success could help Tesla in a new innovation phase – if the risks do not prevail over rewards.
