Tesla investor and analyst Dan Ives proposed a merger between Tesla and AI startup xAI, potentially creating a rival to OpenAI and other big tech players like Meta and Microsoft. The combined company would need to raise $15-20 billion to stabilize its balance sheet.
Ives suggests that Elon Musk could acquire 25% voting control of Tesla and gain enough influence to get approval from xAI’s investors or board, despite some concerns about the risks. If successful, the merger would integrate Tesla’s data with xAI’s AI capabilities, making it a strong player in the field.
However, Musk has publicly expressed his disdain for public scrutiny, which may make it unusual for him to pursue an open merger with xAI. Nevertheless, Ives believes that this is his best path to beat rival Sam Altman and maintain Tesla’s competitive edge.
Meanwhile, US President Trump and Israeli Prime Minister Benjamin Netanyahu are meeting to discuss a potential Gaza ceasefire and hostage deal. The two leaders had dinner last night, but the added meeting comes as negotiations for a 60-day truce gain momentum.
Source: https://www.axios.com/2025/07/08/tesla-xai-merger-ives