The grift goes on...
Looks like Elon Musk may be setting up Tesla to “bail out” his private AI company, xAI, which just absorbed Twitter (X), despite xAI having little revenue and a speculative $125B valuation.
This move follows Musk’s history of shifting losses and leveraging Tesla to cover bad bets—like the overvalued $44B Twitter purchase that tanked in value. Now, Musk is inflating xAI’s valuation via a stock-based acquisition of X and may push Tesla to invest in xAI under the pretense of needing AI for its products.
Critics argue this is a self-serving scheme, with Musk regaining Tesla shares he sold to buy Twitter, effectively making Tesla shareholders foot the bill twice. Meanwhile, xAI’s product “Grok” trails far behind industry leaders, raising concerns that this is more about Musk’s control than business value.
Elon Musk, who already suggested Tesla invest in xAI, is now setting the stage for the public company under his...
electrek.co