TLDR
- Tesla stock increased by 0.7% to $403.99 on Wednesday during trading sessions.
- Elon Musk’s xAI is nearing a $15 billion funding round that values the company at approximately $230 billion.
- Musk owns an estimated 50% stake in xAI and could gain $50 billion to $60 billion in wealth from the deal.
- Tesla shareholders voted on an advisory proposal favoring potential investment in xAI at the November 6 annual meeting.
- The shareholder vote received 1.1 billion votes in favor and 916 million votes against the xAI investment proposal.
Tesla stock rose on Wednesday following reports about CEO Elon Musk’s artificial intelligence venture. Shares gained 0.7% to reach $403.99 during trading sessions. The S&P 500 and Dow Jones Industrial Average also posted gains of 0.4% and 0.1% respectively.
The Wall Street Journal reported that xAI approached a $15 billion fundraising agreement. This deal values the startup at approximately $230 billion. The AI company merged with X, Musk’s social media platform, in March when it held a $110 billion valuation.
xAI Valuation Boost Impacts Musk’s Holdings
Musk controls an estimated 50% stake in xAI, according to market analysts. The new funding round could add $50 billion to $60 billion to his total wealth. However, exact ownership percentages and final valuations remain unconfirmed by official sources.
Tesla stock shareholders recently approved restricted stock options for Musk worth roughly $1 trillion. These options depend on meeting specific performance targets over time. The company disclosed vote results at its November 6 annual meeting.
Investors also participated in an advisory vote concerning potential xAI investments. The proposal received 1.1 billion votes in support of the investment strategy. Meanwhile, 916 million votes opposed the measure, and 473 million shareholders abstained.
Tesla Stock Gains From xAI Funding News
The shareholder vote carries no binding authority for company decisions. Yet it demonstrates investor interest in connections between Tesla and xAI. Both organizations invest billions in developing practical AI applications for commercial use.
Wedbush analyst Dan Ives anticipates Tesla stock will benefit from future xAI partnerships. “Tesla is moving toward an investment and partnership” with the AI firm, Ives stated. No formal agreement has yet materialized between the two companies.
Tesla stock receives support from AI-related developments across the technology sector. Investors increasingly view the automaker as an AI company rather than a traditional manufacturer. Self-driving technology and humanoid robots represent key growth areas for the business.
The electric vehicle maker maintains a market valuation of $1.3 trillion. Tesla stock trades at approximately 180 times projected 2026 earnings. This premium reflects expectations for AI-powered products to drive future revenue growth.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
