On Monday, Elon Musk, the CEO of Tesla, made it clear that he does not support the proposed merger between his electric vehicle company and his artificial intelligence firm, Xai. This suggestion had recently been put forth by a prominent analyst.
When users on the social media platform X inquired if Tesla investors favored the merger, Musk simply responded with a “No.”
This stance came after Dan Ives from Wedbush Securities had previously indicated that the Tesla board could consider merging with Xai while also increasing Musk’s voting power to 25%.
The merger idea was part of a larger proposal, which called for the creation of a performance-based compensation package for Musk, defined expectations regarding his time commitment to the company, and the establishment of a special committee to guide political actions.
Ives, a well-known supporter of Tesla, urged the board to take action after Musk announced his intention to form a third party called the American Party. Following this, Musk responded to Ives’ comments on X with a sharp “Shut up, Dan.”
The shift towards Musk’s political engagements recently impacted Tesla’s stock prices, which declined last week. The electric vehicle industry has faced significant challenges this year, largely due to the political actions taken by its leaders.
Musk has become a political figure, symbolizing the controversies surrounding his cost-cutting measures and involvement with the Trump administration. While his departure from that administration briefly eased investor concerns, he soon started opposing the president’s substantial tax and spending proposals publicly.
This interest aligns with broader efforts to enhance his AI enterprise. Reports from the Wall Street Journal indicate that SpaceX, another of Musk’s companies, has committed to investing $2 billion in Xai. The merger between X and Xai took place back in March.
