Tesla’s shareholders will be voting on a proposal in November to urge the company, as part ongoing discussions regarding the automaker’s long-term strategies, to invest into Elon Musk’s AI startup xAI.
Stephen Hawk is a psychiatrist of 56 years and a longtime Tesla shareholder. His proposal highlights the growing interest among shareholders in aligning Tesla resources with Musk’s AI goals.
Hawk proposes shareholder proposal
Stephen Hawk is the driving force behind this proposal. He has owned several Teslas since 2013, among them two Model S, five Model 3s and a Cybertruck.
Hawk, a Musk superfan and active member of the Tesla shareholder community, presented this proposal after Musk publicly encouraged Tesla investors to support xAI.
Hawk told WSJ that he was inspired to join Tesla by Elon Musk’s genius and his experience with multiple Tesla vehicles and a Tesla Solar Roof.
Hawk’s request asks the Tesla board for an approval to invest in xAI, “in a form and amount deemed suitable,” but leaves the details to their discretion.
Tesla’s recent proxy statement did not include any guidance regarding its xAI investment. All proposals will be voted on by shareholders at the annual meeting of Tesla on November 6th.
Hawk has been a familiar face in the Tesla community for many years.
He posted photos of him at Tesla events, with people like Alexandra Merz (aka Tesla Boomer Mama) and Sawyer Merritt. In fact, he proposed to his wife in a Tesla Store, Tampa, Florida.
It was reported that his submission was one of 140 shareholder propositions supporting the investment across companies in late July.
Tesla and xAI already in collaboration
The investment proposal reflects a broader relationship that has existed between Tesla and xAI.
The two companies are currently working together on Grok AI, a companion voice assistant that is integrated in some Tesla cars.
Tesla also supplies xAI with industrial batteries to run its datacenter, while Grok has been integrated into Tesla’s Optimus robot.
Elon Musk has publicly backed Tesla’s investment in xAI.
He ran a survey on X last year to measure public opinion and encouraged shareholders to make proposals for formalizing the partnership.
Musk said, “We will act according to the wishes of the shareholders,” indicating his willingness to support an investment should it be approved.
Musk has been criticized for his multiple businesses and the potential investment is a result of this.
Some analysts have questioned if xAI’s focus on artificial intelligence general could be in conflict with Tesla’s “real world AI” work for autonomous vehicles or robotics.
Hawk and others see an investment to be a means of ensuring Tesla shareholders profit from Musk’s AI endeavors outside the carmaker.
Tesla’s Market Strength and Shareholder Interests
Tesla’s stock has performed well despite challenges in its automotive division. This is due to investor optimism about its plans for the robotaxi and its broader expansion.
Tesla remains one of world’s top automakers with a valuation of more than $1.2 trillion, or roughly four times Toyota.
Hawk says that formalizing a Tesla xAI investment will ensure mutual benefit and align shareholder interests with Musk’s AI goals.
SpaceX, a Musk-led firm, invested in xAI for $2 billion as part of a fundraising round of $5 billion, highlighting Musk’s broader ecosystem.
Tesla’s formal participation in this initiative will be determined by the shareholder vote that takes place in November.
The post Tesla shareholder presses board to make investment in Elon Musk’s xAI first appeared on ICD
This site is for entertainment only. Click here to read more
