Elon Musk's web of investments keeps getting more tightly interwoven
Musk is tying his various companies together — and shareholders in large part seem to be on board.
Richard Bord/Getty Images
- On Tuesday, Elon Musk floated the idea of Tesla investing $5 billion into xAI.
- Musk's gotten pushback for shifting resources between his companies in the past.
- But shareholders in the past have bought into Musk's whole entrepreneurial vision — rather than just its parts.
Should Elon Musk spend money from one company he controls to invest in another? Musk asked users of a third company he controls.
On Tuesday night on X, Elon Musk floated the idea, polling users whether Tesla should invest $5 billion into his burgeoning AI startup, xAI.
It wouldn't be the first time Musk has sought to shift resources from one company he controls to another.
Fortune reported in April that five companies run by Musk — including SpaceX, Tesla, X, the Boring Company, and an unnamed security entity — had billed one another $9.1 million in various transactions over roughly a year.
But it's a strategy that has garnered pushback.
Last month, a group of Tesla shareholders filed a lawsuit accusing Musk and the EV maker of diverting AI talent and resources to xAI — including key employees and critical Nvidia graphics processing units.
Business Insider reported in June that at least 18 former Tesla employees had joined another Musk startup, Neuralink.
And when Musk bought Twitter — and renamed it X — some engineers from Tesla went over to work at his new social media platform; Musk later said the engineers had volunteered for the work.
As for Tuesday's poll, Musk assured he was just testing the waters, noting that "board approval & shareholder vote are needed." Still, users were overwhelmingly in favor of the idea, to the tune of 69%.
While other companies might be terrified of muddying the waters, fearing an SEC investigation or shareholder revolt, Musk has proven able to shift resources across his increasingly interwoven empire.
That's likely because shareholders have bought into his entire entrepreneurial vision moreso than any of its individual parts.
Musk's bold vision has earned him a cult-like following, which was on full display at the company's shareholder meeting in June, where attendees wore Cybertruck shirts, signed banners, and sung his praises in a Q&A.
Tesla did not immediately respond to Business Insider's request for comment.
Earlier Tuesday, Tesla reported Q2 earnings, which saw its stock tumble on missed expectations.
On the call, Musk faced tough questions about reallocating resources, including diverting Nvidia chips from Tesla to xAI and X.
Earlier in the call, Musk had voiced concerns about Nvidia chip access in light of scorching demand. But when asked about diversion, Musk said Tesla lacked the infrastructure to use them.
"I want to be clear that was in Tesla's interest, not contrary to Tesla's interest," he said.