Tesla shareholders are gearing up for a pivotal vote this November—one that could reshape not just the future of the electric vehicle giant, but also the tangled web of companies led by Elon Musk. On November 6, 2025, at 3 p.m. Central Time, investors will gather at Tesla’s sprawling Gigafactory Texas (with a livestream for those watching from afar) to decide whether Tesla should invest directly in xAI, Musk’s artificial intelligence startup. The proposal, submitted by Florida shareholder Stephen Hawk, who owns $2,000 worth of Tesla stock, is being pitched as a strategic move to secure Tesla’s place at the forefront of AI, robotics, and energy innovation.
This vote comes at a critical juncture for Tesla. The company is facing slowing electric vehicle (EV) sales, intensifying competition from China, and a robotaxi program that has yet to deliver on its long-promised potential. In response to these headwinds, Tesla’s management has increasingly emphasized that the company’s real engine for growth lies in its AI-driven technologies—most notably, its Full Self-Driving (FSD) system and Optimus, the humanoid robot. As reported by TechCrunch and Tekedia, the integration of Grok, xAI’s advanced chatbot, into Tesla vehicles is already being cited as tangible proof of the benefits that could come from a deeper collaboration between the two Musk-led companies.
In his supporting statement, Hawk wrote, “As Tesla pivots toward AI-driven technologies, including Full Self-Driving and robotics, a strategic investment in xAI would secure access to advanced AI capabilities, enhance product innovation, and drive shareholder value.” It’s a bold claim, and it’s one that has sparked debate among both investors and analysts.
Notably, Tesla’s board has taken a neutral stance on this proposal—a rare move for a company that usually recommends voting against shareholder-led initiatives. If shareholders give the green light, Tesla would become the second Musk company to invest in xAI. SpaceX, Musk’s aerospace venture, has already committed $2 billion to xAI as part of a $5 billion equity raise, according to TechCrunch. This hefty investment has led to speculation that xAI might be struggling to attract outside capital, raising the stakes for Tesla’s own shareholders. Earlier this year, Musk also merged X (the company formerly known as Twitter) with xAI, further cementing his vision of xAI as the linchpin of his growing AI empire.
But not everyone is convinced that closer ties between Tesla and xAI are a good idea. Some shareholders have voiced concerns that xAI could become a direct rival to Tesla, especially given Musk’s longstanding characterization of Tesla as an AI company in its own right. In fact, a group of shareholders sued Musk last year for launching what they saw as a competing AI venture, though the case was eventually dismissed. The unease hasn’t entirely dissipated; questions linger about whether Musk’s attention—and Tesla’s resources—might be spread too thin across his various ventures.
Against this backdrop, Musk has made it clear that he needs more direct control of Tesla to steer its AI future. This argument dovetails with another high-stakes item on the November ballot: a Tesla-backed, 10-year compensation plan for Musk that could be worth up to $1 trillion. The package would give Musk more than 25% ownership of the company, tying his payout to some truly ambitious benchmarks—including boosting Tesla’s market capitalization from about $1 trillion today to more than $8 trillion. This new compensation plan comes as Tesla continues to appeal a Delaware judge’s decision to strike down Musk’s previous $56 billion pay package, which the court said was unfairly structured.
Gene Munster, managing partner at Deepwater Asset Management, offered a blunt assessment to TechCrunch: “Tesla’s not going to get to $8 trillion market cap based on FSD and robotaxi. To get to that $8 trillion, you kind of need xAI.” Munster added, “We’re talking numbers that have historically been inconceivable. To get to those, we need things to happen that are inconceivable right now. And one of them is humanoid robots everywhere; that’s probably the biggest lever.” According to Munster, the excitement generated by a potential partnership between xAI and Tesla could itself boost Tesla’s valuation, not to mention the tangible benefits of access to xAI’s compute resources and advanced AI capabilities.
The timing of this vote is no accident. Tesla is under pressure from multiple directions: slowing EV demand, rising competition in key markets, and persistent questions about Musk’s ability to juggle the demands of his ever-expanding empire. The votes on both xAI and Musk’s $1 trillion compensation package will serve as a litmus test for investor confidence in Musk’s vision—and their willingness to double down on a future that hinges as much on AI as it does on electric cars.
Some investors see the proposal as a necessary step to keep Tesla at the cutting edge of innovation. The integration of AI tools like Grok into Tesla’s vehicles is already being held up as a sign of what’s possible when Musk’s companies work together. “Just the excitement around xAI and Tesla together is going to move Tesla’s valuation higher,” Munster told TechCrunch. Others, however, remain wary. The concern is that Tesla shareholders could end up subsidizing another Musk-led venture—especially if xAI continues to struggle to attract outside investors, as SpaceX’s large commitment seems to suggest.
For its part, the Tesla board’s neutrality on the xAI proposal is telling. It reflects both the opportunity and the uncertainty that come with deeper integration between Musk’s businesses. On one hand, there’s the tantalizing prospect of Tesla leading the next wave of AI-driven innovation. On the other, there’s the risk that Musk’s sprawling ambitions could dilute focus and resources at a time when Tesla faces real competitive threats.
As the November 6 meeting approaches, all eyes will be on Tesla’s shareholders. Their decision will not only shape the company’s immediate future, but could also signal how much faith the market still has in Musk’s ability to deliver on his grandest promises. Whether they choose to embrace a closer partnership with xAI or urge caution, the outcome of this vote is sure to reverberate far beyond the walls of Gigafactory Texas.
With the stakes this high, it’s no wonder the world is watching. Tesla’s next act may well hinge on what happens in that Texas boardroom—and whether investors are ready to bet big on a future where AI, robotics, and electric vehicles are more intertwined than ever before.
