Elon Musk sparks debate ahead of high-stakes Tesla shareholder vote

Tesla CEO Elon Musk rejected the idea of a merger between the automaker and his AI firm, xAI, CNBC reported. Musk replied "No" on X after a user asked whether the two companies should join forces.

The post came as Musk faced renewed scrutiny over the overlap between Tesla's direction and his other companies. While he ruled out a merger, he indicated that Tesla would hold a shareholder vote on whether to invest in xAI. In an earlier poll, Musk asked whether Tesla should invest $5 billion in xAI. Most followers supported the idea.

This year, according to its most recent strategy update, Tesla cut production targets and delayed new models. The decisions followed legal setbacks and broader concerns about Tesla's growing ties to Musk's other companies.

CNN shared that xAI's Grok chatbot also drew public backlash for antisemitic responses. The company later apologized and made product corrections. Some investors worry that linking Tesla more closely to xAI could pull attention from its core business and stir more backlash. Earlier this year, Musk's online posts triggered calls from some shareholders to dump Tesla stock.

However, Tesla has previously bounced back from public criticism and investor doubt. In 2023, the company outperformed market expectations even amid skepticism about Musk's direction.

The decisions made by Tesla impact the future of clean energy and electric transportation. Its electric vehicle lineup has made electric driving more mainstream, cutting tailpipe air pollution in the process. A stronger tilt toward AI could limit its momentum in clean transportation. That momentum also depends on how people power their vehicles.

Watch now: How bad is a gas stove for your home's indoor air quality?

Installing solar panels can dramatically improve the long-term savings of EV ownership, as charging with solar power is cheaper than using public stations or the grid. EnergySage makes it easy to compare vetted local installers and save up to $10,000 on setup costs.

Public response varied, with some supporting Musk's decision to separate the companies. On the X thread, one commenter wrote: "Let Tesla, which is already making $$$ do its thing, while xAI leads us into new frontiers."

Another added, "This is no brainer. Completely different mission."

Would you still consider buying an EV if there weren't tax incentives for doing so?

Definitely 👍