Technology9/8/2025Bloomberg

Tesla Investors Debate Whether to Throw a Lifeline to xAI

Tesla Investors Debate Whether to Throw a Lifeline to xAI

The article discusses the ongoing debate among Tesla investors regarding whether to provide financial support to Elon Musk's artificial intelligence company, xAI. Tesla's financial stake in xAI has raised concerns, as some investors believe the carmaker should focus solely on its core automotive business. However, others argue that the AI venture could potentially benefit Tesla's long-term technological development, particularly in areas like autonomous driving. The article highlights the close relationship between Musk's various companies, including Tesla and xAI, and the challenges this poses for investors trying to assess the potential risks and rewards of such intercompany relationships. The article notes that the debate over Tesla's involvement with xAI is ongoing, with no clear consensus among investors on the best course of action. The decision could have significant implications for Tesla's future direction and the broader relationship between the company's various business interests.

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