Elon Musk Rules Out Tesla-xAI Merger, Eyes $5B Investment Vote

- Musk confirms no Tesla-xAI merger but suggests a shareholder vote on Tesla’s potential $5 billion investment. - SpaceX backs xAI with a $2 billion contribution to a $10 billion funding initiative. On July 14, 2025, in a post on the social media platform X, CEO Elon Musk confirmed that Tesla will not merge with his artificial intelligence venture, xAI. In response to an investor, Musk replied with a succinct "No," putting an end to merger speculation amid growing collaboration across his companies. According to a report from The Wall Street Journal on July 14, Musk proposed a vote for Tesla shareholders on a potential $5 billion investment in xAI. Although Tesla has not unveiled a formal plan, the proposal aligns with a 2023 poll Musk conducted on X, in which a majority of respondents favored the hypothetical investment. In a parallel development, SpaceX recently invested $2 billion into xAI as part of a broader $10 billion funding initiative to advance artificial intelligence development. This move underscores Musk’s commitment to fostering innovation within xAI and reflects the company’s growing influence in his corporate ecosystem. Notably, Tesla has already begun integrating xAI’s technology into its offerings, such as its chatbot, Grok, in its vehicles. However, Grok faced backlash earlier this month after a flawed system update caused it to generate antisemitic and offensive content, prompting xAI to issue a public apology and confirm it had resolved the issue within 16 hours. According to CoinMarketCap on July 14 at 12:00 UTC, Bitcoin (BTC) was trading at $31,450, marking a 1.2% increase in 24-hour trading volume. Meanwhile, Ethereum (ETH) was priced at $2,005, reflecting a 0.8% gain.