Tuesday, September 16, 2025

Musk Floats Idea of Tesla Funding xAI Amid Earnings Decline

Elon Musk is “testing the waters” on X, asking users whether Tesla (Nasdaq: TSLA) should invest $5 billion in his artificial intelligence startup xAI. The poll comes after Tesla reported its lowest profit margin in five years due to price cuts and increased AI project spending.

During Tesla’s recent earnings call, Musk suggested that xAI could be beneficial for advancing Tesla’s full self-driving technology and building its new data center. He also mentioned the potential integration of xAI’s chatbot, Grok, with Tesla’s software.

The poll, which garnered around 386,000 participants within three hours, showed 70% in favor of the investment. However, Musk noted that both board approval and a shareholder vote would be necessary for such an investment to proceed.

xAI, launched by Musk in 2023, aims to compete with major AI players like Google (Nasdaq: GOOG), Microsoft (Nasdaq: MSFT), and OpenAI. The startup recently raised $6 billion in Series B funding, achieving a post-money valuation of $24 billion. Musk has positioned Grok, xAI’s first product, as a politically incorrect and witty alternative to existing AI chatbots.

Read: Tesla Shareholders Sue Elon Musk For Diverting AI Resources to xAI

The proposed investment has raised questions about resource allocation among Musk’s various companies. Earlier reports suggested that Musk had redirected AI chips originally destined for Tesla to xAI and X, citing limited space in Tesla’s data center.

This poll follows a pattern of Musk using X for significant business decisions. In 2021, he conducted a similar poll regarding the sale of 10% of his Tesla stake, which preceded actual share sales.

The question also comes at a time when Tesla’s financial performance has been under scrutiny. The company’s second-quarter earnings fell short of analyst expectations for the fourth consecutive quarter, with declining revenue in its core automotive segment. However, Tesla saw growth in energy storage sales and is focusing on future projects like robotaxis and humanoid robots.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Elon Musk Dumps $6.9 Billion In Tesla Stock After Pumping Up Investors At Shareholder Meeting

It appears that Elon Musk has pulled a classic pump and dump on Tesla (NASDAQ:...

Tuesday, August 9, 2022, 10:13:33 PM

Ex-Engineer Says Tesla Invented Crash Data for Autopilot

Former Tesla (NASDAQ: TSLA) software engineer Akshay Phatak told a Miami federal jury that the...

Thursday, July 17, 2025, 12:50:00 PM

Did Elon Musk Steal the ‘Grok’ Name from Ex-Girlfriend Grimes?

Artist and musician Grimes has partnered with toy company Curio to introduce “Grok,” an interactive...

Friday, December 15, 2023, 02:11:00 PM

US Launches Special Probe into Tesla FSD Following Fatal Crash

U.S. auto safety regulators have initiated a special investigation into a tragic accident that occurred...

Monday, July 24, 2023, 03:41:00 PM

Farewell, Twitter! 50 of Twitter’s Top 100 Advertisers Have Left the Platform Since Elon Musk Takeover

Since taking over Twitter, Elon Musk envisioned a social media platform where advertisers, prominent figures...

Saturday, November 26, 2022, 11:04:00 AM