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Elon Musk plans to raise $5 billion in xAI from Tesla

Forklog / 24.07.2024 / 11:57
Elon Musk plans to raise $5 billion in xAI from Tesla
Elon Musk has offered Tesla to invest $5 billion in xAI.Tesla earned $1.5 billion in the second quarter of 2024.The electric car manufacturer holds 9720 BTC worth $785.7 million.

Elon Musk published a survey in X in which he suggested that Tesla invest $5 billion in his AI startup xAI according to an estimate set by reliable and independent investors.

Should Tesla invest $5B into @xAI, assuming the valuation is set by several credible outside investors?

(Board approval & shareholder vote are needed, so this is just to test the waters)

— Elon Musk (@elonmusk) July 24, 2024

To date, 635,670 people have voted, 68.7% supported the idea. In the post, Musk drew attention to the fact that such a decision requires the approval of the board of directors and a vote of shareholders. 

The survey was published against the background of the publication of Tesla's financial report for the second quarter. The company reported its lowest profit in five years due to lower prices, weak sales and increased spending on artificial intelligence projects. 

Tesla's Second Quarter Report

Tesla earned $1.5 billion on revenue of $25.5 billion between April and June. In the second quarter of 2023, the figures were $2.7 billion and $24.9 billion, respectively. The company's shares declined by 7.3% after the publication of the report. 

During a press conference dedicated to the report, shareholders asked Musk whether Tesla could invest in xAI and integrate Grok artificial intelligence into cars, CNBC notes. 

"Tesla is learning a lot from xAI. This has really helped in the promotion of full autonomous driving and the creation of the company's new data center. As for investing in xAI, I think we need to get shareholder approval. But I certainly support this idea if the shareholders support it," the billionaire replied. 

Tesla holds on to Bitcoins

The financial report says that the electric car manufacturer continues to hold $184 million worth of bitcoin at book value.

Tesla's assets in cryptocurrency. Data: Tesla's financial report.

According to BitcoinTreasuries, the company holds 9720 BTC, with a market valuation of $785.7 million.

In April, Arkham Intelligence analysts said they had tracked down Tesla-owned crypto wallets. According to their data, 11,509 BTC are stored at 68 addresses.

In February 2021, it became known that the company had invested $1.5 billion in bitcoin. Elon Musk called these investments "quite risky."

In the spring of 2021, Tesla began selling its electric cars for digital gold, but subsequently abandoned this option.

By the end of the second quarter of 2022, the company had converted approximately 75% of the cryptocurrency into fiat, which brought it $936 million.

Recall that in June 2024, Tesla shareholders sued CEO Elon Musk and the board of directors over the billionaire's decision to found xAI. 

Earlier, the entrepreneur said that Optimus robots will bring the capitalization of the electric car manufacturer to $ 25 trillion.

In April, Musk's AI startup agreed to raise $6 billion with a preliminary estimate of $18 billion. 

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