Tesla receives several proposals from shareholders regarding investment in xAI

Tesla Inc said Friday it has received several shareholder proposals regarding the company's plan to invest in Chief Executive Elon Musk's artificial intelligence startup xAI.

Earlier this month, Musk ruled out a merger between Tesla and xAI, but said he plans to hold a shareholder vote on an investment by the automaker in the startup.

The proposals come amid significant funding activity for xAI this year. The startup completed a $5 billion debt raise along with a parallel $5 billion strategic equity investment, as reported by Morgan Stanley last month.

Musk has pursued an integration strategy across his business empire, with xAI acquiring social network X in March for $33 billion to enhance its chatbot training capabilities, as well as integrating the Grok chatbot into Tesla vehicles.

The discussion about the potential investment comes as Tesla faces several challenges, including Musk's political actions, which have hurt demand for its electric vehicles and caused its shares to fall 22% this year.

"Shareholders are welcome to submit any proposals they wish," Musk said on Tesla's quarterly earnings call on Wednesday.

Tesla, which holds its annual shareholder meeting on November 6, said it will include only one proposal on each topic in its proxy statement, under SEC rules.

Earlier this month, the board set July 31 as the deadline for submitting shareholder proposals to be included in the proxy statement.