Future Fund LLC's veteran investor, Gary Black, thinks that a shareholder vote would likely be the ideal option to decide on a merger between Elon Musk's EV giant Tesla Inc. TSLA and xAI.
Check out the current price of TSLA stock here.
What Happened: The investor took to social media platform X on Tuesday to share his thoughts on the matter after Musk had said that a merger between the two companies would be up to shareholders.
"Tesla putting a potential TSLA/xAI (which includes X) merger to a shareholder vote is the fairest way to resolve this," Black said before adding that it would be opposed by institutions on "dilution grounds" but supported by retail investors.
"Not sure why Elon would want to sell xAI now since xAI likely to grow much faster than TSLA over next 5 years," the investor said and added that such a move would likely increase Musk's stake in the automaker to "over 20%."
Why It Matters: The news comes as talks of a potential merger between Musk's companies have gathered steam, with the billionaire's commercial space exploration company, SpaceX, planning to invest over $2B in xAI.
Tesla will also offer xAI's artificial intelligence model Grok in all of the company's cars that run Advanced Micro Devices Inc.'s AMD Ryzen chipset in the U.S.
Elsewhere, Musk has teased a "most epic demo" by Tesla towards the end of the year, leading to speculation about the company's Optimus line of robots, which reportedly is undergoing a significant redesign.
Tesla offers Satisfactory Momentum and Quality, while scoring well on the Growth metric, but offering poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Read Next:
Photo Courtesy: Around the World Photos On Shutterstock.com
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
