Isn’t that a conflict of interest? This guy gets a trillion dollars?
Tesla is a failing car company. The pullback from q3 sales will hit hard next quarter. Plot twist. None of them are AI companies. Just glorified chatbots and autosuggest.
Because the board allows it.
"It's a big club and you ain't in it"
Don't worry. The barebones Model Y, the roadster and the model 2 will pump new life into the product offerings
That way when the not a car company ai company buys the totes not failing ai company it can be framed as a positive and not as the owner of said ai company raiding the coffers of the car company.
Don't forget about the Semi-Truck and all the house robots soon!
he probly gonna make his cult shareholders buy his ai company
They aren't an AI company, that's all just low information fan boi hype from ppl that don't understand how tech works. Leon moved engineers and Nvidia chips from Tesla to xAI. They *may* have some level of in house AI for training fsd, but that's mostly an assumption.. and even if they do, there's no public way to consume or sell it, and judging by fsds capability obviously isn't very good if it does exist
My prediction is that after Q4 financials are out Tesla stock will start to crater and xAI will buy it. They may even spin out the car business and keep the fsd part. Eventually
Tesla is a car company that is valued as a tech company and being run as an investment firm (assets and profits run X, Twitter and a rocket company). Their future relies on tech (self driving capability).
"Somehow, most Americans are dumber than the average American" - the new carlin is gonna be brutal.
I actually think it'll go the other way. Once Tesla stock crashes
He will do the interesting ventures in companies were he owns higher stakes. But he still has to tell the story that Tesla will soar, because of Robots, AI,... He recently explained that robotaxis is the next big thing and Tesla has to increase their CapEx to handle the future demand. CapEx went down in the last quater
CEO is a snake oil salesman. Tesla is AI, Tech, Robotics, Climate friendly and where ever there are govt subsidies, it’s all of it.
But as Tesla CEO he has a duty to shareholders to grow the company. Seems like a conflict of interest
Don’t they also have a fiduciary duty to shareholders
It’s a pyramid scheme!
The guy literally redirected resources away from Tesla towards his privately held AI company that is a competitor. It's very clearly a conflict of interest. I don't know why anyone would trust him to do what's in the best interest of Tesla rather than X right now.
A pedo robot - really… look at the Grok AI story asking a kid to send nudes! Ban all Elon products with your money folks!
Yeah he wants it private so he has less scrutiny.
If Tesla is an AI company then why is its PE an order of magnitude higher than any other (real) AI company...
They are the shareholders
If you look up conflict of interest in a lexikon you find a picture of Elon Musk.
Damn, I was still banking on the underground tesla-only superhighway!
He's the man we need
A better question is why this world leading AI company is investing significantly less resources into R&D vs every other big AI company out there including xAI. You’ve got the likes of OpenAI, Google, Meta etc all pumping hundreds of billions into building out infrastructure. Tesla seems to want you to believe they can be a world leading AI company without spending even a 1/10th on R&D that all its competitors do because…. reasons.
We’ll have the robots driving the cars for us, but the robots will just be telepresence offshored workers
It’s always a grift.
And Full Self Driving will totally be ready this year!
that is RealTesla talk. good question…answer is… cue smoke, mirrors: turn on pump n dump machine
So Elon can move debt back and forth between companies and never pay it off.
If you want the simple answer - it's because probably at least 50-75% of the value of TSLA stock is predicated on Elon's involvement, and the enduring, credulous belief by Wall Street and retail that he will be at the forefront of every coming tech revolution. It doesn't matter what he does, since Tesla isn't valued on its fundamentals anyway. So long as he is nominally involved, the stock price continues to trend upwards. Until it doesn't.
Tesla is a floor wax company.
They apparently have a fiduciary responsibility to booster Musk’s stock value.
Need the separate company to buy Tesla’s to make Tesla look like less of a failing company.
fElon's real genius is in being able to recycle a narrative just by swapping "solar" out for "AI".
What can we say? Honda bots are more reliable than wankpanzers
I mean Revenue is down 40% and the P/E shot past 300, it’s mind boggling.
I made a little money this year effectively shorting Tesla stock. I guess I'll have to try that again.
> credulous belief i think you're missing an 'in'
>i think you're missing an 'in' Nope, that would be the opposite of what I mean. Wall Street and co are credulous when it comes to Musk. If they were incredulous that would actually be a good thing.
Solarcity part deux
I constantly ask this question to Elon fanboys. Everyone is now willing to acknowledge Tesla’s car business is failing now that they can push the “it’s actually an AI company!” line. But… what are the products? Where’s the AI? Optimus robots? AFAIK the highest profile and most public one was the popcorn robot at the Tesla diner, and they had to take it off the floor, and have never put it back. So Tesla can’t even get their robot to reliably serve popcorn but Elon fanboys are saying they’re going to be shipping millions to consumers next year. “It’s an AI company” but the CEO is literally saying that if he’s not given _more_ money, he’s going to work on AI outside of Tesla. That’s some of the most abominably poor corporate leadership I’ve ever seen and nobody other than Elon could get away with it. It’s crazy that Tesla’s has been overvalued for 15 years on Elon’s false promises of FSD coming soon, and now in 2025 when it’s clearer than ever that FSD is not remotely close to coming soon… Tesla Is extra overvalued despite its plummeting revenue because Elon is making _new_ promises that he knows are impossible. Meanwhile Elon is mobilizing capital of his other companies to make his own companies buy cybertrucks to make Tesla’s metrics look better to angle himself to be able to fake the requirements to unlock his extra stock options.
The single lane wide superhighway with no way to exit if somebody’s car battery dies? That FSD doesn’t work in, even in the Vegas Loop?
The perverse incentive here is technically they do better by shareholders by feeding into Elon’s delusions because the stock price circlejerks itself higher. The company being honest about its financial situation and forecasts would implode the stock price. Until it pops.
One is building mechahitlers and other is building taxis for mechahitlers.
Bullebulle: lHey Rocky, watch me pull a new date guarantee out of my ass!”
I keep telling myself this. Wanted to do it in August when it was ~$350. We all know it’s overvalued but I would be down big if I had gone in then. Trying to call the timing for it is so dangerous
Not a chance. Even if the stock crashed like it should xAI wouldn’t have nearly enough cash to purchase the stock that is public, and you can’t just declare the stock worthless without declaring bankruptcy and going through a court.
The Tesla crash will be the everything crash. Municipal and pension fund exposure is huge as well as crypto overlap.
if you'd said 'incorrect, credulous belief' I wouldn't have typed anything, fwiw
Yeah. I'd been wanting to short Tesla since 2015, but didn't do it until ... early 2025? ... when it was just ridiculously overvalued. The market can stay irrational longer than I can stay solvent, for sure
Leveraged buyout buyout baby! Take on a fuck to be of debt to pay off the Tesla shareholders, i.e. Musk himself, and then once the dust settles spinoff the car business with all the debt and just keep the fsd part and no more debt on the books. Maybe keep the supercharger network too if he's a total troll, and let's face it he is. Tesla goes bankrupt and bought by someone else eventually
siri with more datasets
Musk MO - Find popular buzzword>attach futuristic moniker to it>promise profits and solutions next year>profit!
real fear
I'd say it's for leverage against Tesla. "Pay me more, or I'll shift focus to xAI". Now that he has a longer term contract with a trillion dollar bonus attached, that may change to "Buy xAI, or I'll shift focus to xAI," to extract another half trillion.
So he can siphon off money? Most of his other ventures are in conflict with the interest of TSLA and its shareholders. People are still pouring $billions into it. regardless.
Grok is and updated Eliza.
Robotaxi and Robovan.
The big tragedy will come when there's a fire in there and everyon is broiled alive. On the positive side, they are already underground.
They are accomplices.
In \*theory\*, yes. In reality they are all part of the scam.
George was correct.
Or make his "AI" company the recipient of some inflated contracts to siphon out money from TSLA.
It's a ticking timebomb but none of us can see the timer.
Instead of figurativesly redirecting resources?
\> Tesla seems to want you to believe .... The core part of their business is making people believe in things which are impractical, irrational and sometimes impossible. I'm waiting for Tesla's fans to put on fancy running shoes and jump on a comet to Mars.
Their future relies on keeping the mythology alive along with the lies.
The same reason it's that much higher than any other car company.
Don't forget the dancing neoprene "robots".
They are fully getting sued for exactly this from major institutional shareholders. Not only is Tesla named but they are piercing the corporate veil and suing the directors and Musk directly. Piercing the corporate veil is pretty rare. This is big news but both Tesla and the institutional investors want to keep this on the low down as it is a pretty big indication they are concerned about the stock price and optics. Essentially Musk said about 2 years ago if the board/investors do not give him that 46 billion in shares, he would start his own AI company. (This is included as evidence in the lawsuit showing intent). The 46 billion was denied and Musk then started his own AI company and just recently shut down Tesla AI. Not only are they getting sued for that, but part of it is 'resource' tunneling. Musk has been taking employees from Tesla (assume the best) and moving them into his companies. (Twitter, AI company, SpaceX). With that comes some fairly proprietary knowledge. To add to this, Musk just recently had Xai (His AI company) buy X (Twitter) for about 42 billion. Basically this was around the price he paid for Twitter and more or less was just numbers changing on some balance sheets in such a way as to not incur any capital gains/losses. While the capital gains thing is legitimate and the combining is legitimate as they are arms lengths private companies after all, what I suspect he will do soon is very sketchy. Musk within the next year or two will now suggest Tesla needs to buy an AI company and who has one? Musk. And not only will Tesla pay some 200 billion for this (shares and cash to be sure), Tesla will now be saddled with the way over valued and bad purchase of Twitter. BTW, that 200 billion that I mentioned is not something I made up. That number has been (unofficially) thrown out there. https://electrek.co/2025/04/10/cracks-are-forming-in-elon-musks-armor-of-lies/
If i was paying somebody a billion dollars i would expect a full time CEO
Even if it tanks, Tesla is way too much for xAI to buy. And Elon owns a higher percentage of xAI than Tesla, so the obvious scam here is to do it the other way around and have Tesla buy xAI for way more than it's worth.
Well I guess he could have been more subtle
I mean, none of them are actually "AI" companies
I think you're confused
That's why they won't let you on the board
Yeah, I was looking into that recently, it appears that the amount of r/D that Tesla does is paltry compared to the rest of the big Tech
ya i mean.. when I hear folks say 'AI' company, im generally assuming they are referring to companies that provide highly scaled or specialized LLMs. I can't imagine tesla is using LLMs for anything. they've been 'training' fsd for a decade, before the rise of such technology, and with the hallucinations and all that seems like a poor fit. They offer no 'AI' that a consumer can use or interact with. I think people claim tesla is AI cuz of the nEUrAl nETs for fsd, and cuz robots obviously need AI. for all we know tho, FSD could be being built with absolutely nothing resembling what we'd call AI, and could be as poorly coded as musks OG zip2 program
I am thinking of how to market my snack vending machines as an AI company as well. The machine will Use it AI and help you decide which candies you should eat… 🤔
Whoever pays this guy to place a robot in their home deserves whatever happens - literally the last person on earth I would trust to place a humanoid robot inside my home…
Didn't you hear? Tesla gets the privilege of investing in his other AI company too! Of course this is after he and his buddies have got all the early equity, after he's grossly inflated the value in previous funding rounds and by merging with Twitter's corpse at a massive overvaluation too. Putting xAI in a public company would require public filings and likely confirm the fact that very few people are paying for its AI api and services at this point relative to OpenAI and Anthropic. Musk also pitched it to the earlier researchers as focused on general AI and humanity's benefit not making edgelord LLMs and Waifu interfaces for his social media company. His initial contention was actually he couldn't get the original talent onboard within the framework of Tesla as an established company. It's not just a bait and switch on Tesla's shareholders but also early employees of xAI who thought they would be doing more meaningful work instead of pursuing Musk's vendetta against Sam Altman on a day to day basis.
Don’t blame Grok for that shit, blame Elon for installing the program Fasc1sm_Rul3z.exe into Grok
I had to take an Uber today for work and I ended up inside a Tesla. I swear, I thought I was inside a Disneyland ride with how bumpy it is! It’s so scary. It’s like being inside of a tin can. And nope. It is NOT an AI company! It is definitely a cheap and tacky car company that takes itself too seriously.
Tesla is a car company TSLA is a meme stock that has absolutely nothing to do with AI, tech, car sales, faux solar roofs, semis, robots etc. TSLA is a line go up company (for now)
To perpetuate fraud, of course!
Don’t try to make any sense of it, man. There isn’t any to be found.
It’s a stock company.
Anyone who owns Tesla stock is asking to be burned at this point.
Conflict of interest
Cathie Wood is approaching climax at the thought
What about the Martian pressurized Cybertrucks?
I’m still waiting for the solar roof to revolutionize the roofing and solar industries. When that happens, the stock is gonna go up, right?
A failed 'AI' company at that. Grok barely has any paid users I believe?
So Tesla can buy products from XAi. The joke of course is that he siphoned AI resources and talent away from Tesla to create the new company.
Those are just glorified chatbots. Nothing usefull.
I’ve followed this stock for a long time and my only conclusion is don’t touch it with a 10ft pole.
Because sometimes Elon talks shit
Yes, but they don't care. They let Elon ruin the company for short term gains.
xAI is reportedly burning $2B every month, and their one and only product is a racist Twitter-bot. No wonder Elon wants the Tesla shareholders to take the bag and pay him a ridiculous overprice.
I heard he owned two separate AI companies. He owns xAI and X.
These here solar tiles? Revolutionize? Not exactly... Elon Musk, Tesla, and the Solar Roof Tile Fraud – Mansion Engineer https://share.google/3HRHofr6boTUR4kS8
xAI bought X/twitter
Eventually the dude needs to run out of money, right? he has several large factories and billions in fixed costs. if you lose 20% of revenue, you can easily run out of bucks.
Oh I know, that's why I was sarcastically saying I'm still waiting for this product that was supposed to be revolutionary, but instead amounts to corporate fraud
Ah! I missed the sarcasm, sorry 'bout that!
By the way someone beat telsa to the humanoid robots race. Just like waymo beat them to the robotaxi race. Now what
If it were truly revolutionary, it would be everywhere by now. But he used that solar roof sham presentation to justify the merger and save Tesla.
Musk siphoned the AI engineers from Tesla to XAi to " protect them" from OpenAI. He took employees from a publicly traded company he does not own and moved them to a privately held company he solely owns Now he is going to license XAi with a non-compete contract to Tesla and siphoned profits from both. He did the same thing with AI Chips. By far the most corrupt CEO in America and maybe, the world, is Elon Musk
It’s, um. . . because. . . Ya see. . . Aaaagggh! You wouldn’t understand. . . I’m smarter than you!
Well, in two, or three, or ten, years...Felon Musk Promises!
🫣😅
Because we all want a car for 2x the price and 1/2 the features as BYD, Xpeng and lately Huawei.
Tldr: biggest bubble in history about to pop.
But they are hedged and get out faster than the average sucker. Still: the fallout will be significant. Who buys TSLA now has no sense for anything close to value investing. P/E 312.0 right now
Indeed.
It is wise to NOT put all your eggs in the same basket. 🧺
Remember when someone said there will be a computer in every home? Well now the computer will be a ROBOT 🤖 or multiple robots. Are you ready or will you opt out?
Wut
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