July 25 (Reuters) - Tesla said on Friday it had
received a number of shareholder proposals regarding the
company's plan to invest in CEO Elon Musk's artificial
intelligence startup xAI.
Musk ruled out a merger between Tesla and xAI earlier in
July, but said he planned to hold a shareholder vote on
investment in the startup by the automaker.
The proposals come amid significant funding activity for xAI
this year. The startup completed a $5 billion debt raise
alongside a separate $5 billion strategic equity investment,
Morgan Stanley said last month.
Musk has pursued an integration strategy across his
business empire, with xAI acquiring social media platform X in
March for $33 billion to enhance its chatbot training
capabilities, while also integrating the Grok chatbot into Tesla
vehicles.
The potential investment discussion comes as Tesla faces
various challenges, including Musk's political activities, which
have impacted demand for its electric vehicles and triggered a
22% drop in its shares this year.
"Shareholders are welcome to put forward any shareholder
proposals they'd like," Musk said on Tesla's quarterly earnings
call on Wednesday.
Tesla, which will hold its annual shareholder meeting on
November 6, said it would only include one proposal on each
topic in its proxy statement, in accordance with the SEC rules.
Earlier this month, the board set July 31 as the deadline
for the submission of shareholder proposals to be included in
the proxy statement.