On Sunday, Anthony Scaramucci fueled speculation about a potential Tesla Inc. (NASDAQ:TSLA)–xAI merger. The SkyBridge Capital founder said on X that it "feels inevitable" as Elon Musk ramps up efforts to integrate artificial intelligence into his companies.
Scaramucci Sparks Merger Buzz
Scaramucci's post came after the Wall Street Journal reported that Stephen Hawk, a 56-year-old Tesla investor from Florida, had submitted a shareholder proposal urging Tesla's board to authorize an investment in xAI.
Musk supports Tesla investing directly in xAI, his AI startup behind the Grok chatbot. "Will Tesla and xAI merge? Feels inevitable," Scaramucci wrote.
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Shareholder Proposal Puts xAI On The Table
The proposal, included in Tesla's proxy filing alongside a controversial $1 trillion pay package for Musk, will be voted on at the company's annual meeting on Nov. 6.
Hawk said he was inspired by Musk's posts hinting at collaboration.
"Formalizing this partnership is essential to ensure clear mutual benefits for both entities," Hawk said in an email.
Previously, Musk had also polled followers on X about the idea and told investors in July, "We'll act in accordance with the shareholder wishes."
Musk's Vision: Real-World AI
Musk has described Tesla as an AI company at its core, focusing on what he calls "real-world AI" to power autonomous driving, robotics and the Optimus humanoid robot.
At the same time, xAI is developing large language models, including Grok, which is already integrated into Optimus and some Tesla vehicles as an AI companion.
Tesla and xAI also collaborate on energy needs, with xAI purchasing Tesla industrial batteries to power data centers. Musk has suggested a merger or investment could ensure Tesla investors share in the upside of his AI breakthroughs.
Investor Pressure And Market Ambitions
Earlier this month, Gene Munster, co-founder of Deepwater Asset Management, argued that combining Tesla with xAI could help the automaker reach an ambitious $8.5 trillion market capitalization.
Meanwhile, xAI is undergoing internal changes, laying off 500 generalist tutors while pledging to expand its specialist AI teams tenfold. The startup, valued at more than $100 billion, has also raised $10 billion in funding and is reportedly eyeing a valuation as high as $200 billion.
Price Action: Tesla stock gained 4.39% in Friday's regular trading before dipping 0.099% after hours, according to Benzinga Pro.
Benzinga's Edge Stock Rankings indicate that TSLA maintains a strong positive trend across short, medium and long-term periods, with further performance details available here.
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Anthony Scaramucci | Photo courtesy: Al Teich
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
