Elon Musk’s xAI has discussed a deal in which Tesla (TSLA) would share future revenue from Full Self-Driving and more in exchange for using the startup’s AI models.
That’s according to The Wall Street Journal, citing sources. The report adds to questions about the relationship between the two Musk-run companies and the implications for Tesla stock investors.
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Tesla’s Robotaxi Is Delayed. Will It Make A Difference For Tesla Stock?
Tesla could license AI models from Musk’s xAI for FSD and share some of that revenue, perhaps up to half, the WSJ reported. The startup also might help develop other features, including a digital voice assistant like Apple’s Siri or software for Tesla’s humanoid robot Optimus.
No formal revenue-sharing or partnership has been established between Tesla and xAI, but there is already a close relationship.
The startup xAI has hired a number of Tesla employees. Last year, Musk diverted thousands of Nvidia (NVDA) AI chips from Tesla to xAI, later saying that the EV giant had “no place” for them.
Musk has also threatened to shift AI and robotics work to xAI if he didn’t receive higher Tesla compensation. More recently, Musk has suggested Tesla could invest in xAI.
Tesla’s board, not known for its independence, hasn’t signaled any concern about xAI But several shareholders have filed suits in the Delaware Court of Chancery, claiming that the shift in resources to the startup hurts Tesla investors.
Elon Musk will hold a Tesla robotaxi event on Oct. 10, though it’s unclear what investors will see.
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Tesla Stock
Last week, Tesla stock fell 1.6% to 210.73 in a round trip. On Thursday, shares popped above their 50-day line and cleared a 238.22 short-term high, buoyed by robust China sales and the EV giant’s FSD rollout plans. That offered an aggressive entry for TSLA stock.
On Friday, Tesla plunged 8.45%, back below the 50-day line.
Tesla stock has a 271 cup-base buy point, according to MarketSurge.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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