Elon Musk Rules Out Merger Between Tesla And xAI, But Backs Possible Investment

Elon Musk has explicitly rejected the idea of merging Tesla with his artificial‐intelligence venture, xAI. When asked on social media platform X, whether Tesla investors supported such a merger, Musk answered simply, “No”.

Yet Musk didn’t dismiss closer ties altogether. Over the weekend, he said he would bring a proposal to Tesla shareholders asking whether the company should invest in xAI—a move he believes would benefit both entities. “If it was up to me, Tesla would have invested in xAI long ago,” he said, emphasizing that the ultimate decision lies with shareholders. Tesla’s annual shareholder meeting, scheduled for November 6, may include a vote on this proposal.

No

— Elon Musk (@elonmusk) July 14, 2025

This announcement follows several developments linking Musk’s businesses. xAI, which acquired X in a reported $33 billion deal, now powers the Grok chatbot, already being rolled out in beta in Tesla vehicles. Meanwhile, SpaceX has invested around $2 billion in xAI as part of a larger funding round, reinforcing Musk’s strategy of intercompany support.

It’s not up to me. If it was up to me, Tesla would have invested in xAI long ago.

We will have a shareholder vote on the matter.

— Elon Musk (@elonmusk) July 13, 2025

While Musk is open to collaboration via investment, he remains reluctant to blur corporate lines through a merger. He appears to prefer collaboration—such as integrating Grok into Tesla’s infotainment systems—without eroding the operational independence of either company.

The move demonstrates both Musk’s ambition to leverage synergies across his ventures and caution about combining Tesla with xAI. A shareholder vote later this year will determine whether Tesla formally commits capital to his AI effort—though a full merger seems off the table for now.