Tesla CEO Elon Musk said Monday that he does not support merging his electric vehicle company with his artificial intelligence (AI) firm, xAI, after the idea was floated last week by a prominent analyst.
In response to a user on his social platform X who asked Tesla investors whether they backed a merger, the tech billionaire wrote “No.”
He had previously seemed resistant to the idea pitched by Wedbush Securities analyst Dan Ives, who suggested last week that the Tesla board could position the EV maker for a potential merger with xAI by increasing Musk’s voting share to 25 percent.
This came as part of a broader proposal, which also suggested that the board create an incentive-driven pay package for Musk, laying out expectations about the amount of time he needs to spend at the company and setting up a special committee to establish rules for his political endeavors.
Ives, who is a well-known Tesla bull, called on the board to act after Musk announced the launch of his third party called the America Party. The tech mogul quickly hit back at Ives, writing in an X post, “Shut up, Dan.”
Musk’s decision to return to politics caused Tesla’s stock to tumble last week. The EV maker has had a tumultuous year so far, largely as a result of its CEO’s political involvement.
His role leading President Trump’s Department of Government Efficiency weighed heavily on Tesla, which became a political symbol for Musk and his controversial cost-cutting effort.
Musk’s decision to step away from the administration offered a brief reprieve for investors. However, he soon began publicly feuding with the president over his sweeping tax and spending bill.
While Musk was resistant to the idea of a merger, he does appear keen on having Tesla invest in xAI. He suggested Sunday that Tesla will hold a shareholder vote on the matter, writing on X, “If it was up to me, Tesla would have invested in xAI long ago.”
It comes as part of a broader push to boost his AI company. His aerospace company SpaceX has agreed to invest $2 billion in xAI, according to The Wall Street Journal. Musk also merged X and xAI in March.
