Tesla’s stock advanced on Wednesday as investors weighed fresh developments surrounding Elon Musk’s ventures, including a major funding round for xAI and regulatory progress in the company’s nascent robotaxi business.
Tesla stock traded 0.72% higher at $404.13, outpacing the broader market, with the S&P 500 up 0.4% and the Dow Jones Industrial Average ahead 0.2%.
Reports from The Wall Street Journal indicated that xAI is close to raising $15 billion at a valuation of roughly $230 billion, a sharp increase from its valuation of $110 billion in March after merging with X, Musk’s social media platform.
Musk is estimated to own about half of xAI, potentially adding tens of billions to his net worth once the deal is finalised. The exact pre- and post-money valuations remain unclear.
Shareholder interest builds around xAI
The funding momentum comes shortly after Tesla disclosed the results of its Nov. 6 annual meeting, where shareholders voted on two major proposals.
One centred on Musk’s compensation package, which could amount to stock options worth around $1 trillion contingent on performance targets.
Another advisory vote, brought forward by shareholders, called for authorising an investment in xAI.
The vote received strong support from the EV giant’s shareholders.
Arizona clears Tesla for ride-hailing operations
Tesla also secured a regulatory milestone this week. The Arizona Department of Transportation confirmed on November 19 that it granted Tesla a transportation network company permit two days earlier, enabling the automaker to legally operate a ride-hailing service in the state.
Musk has previously said Arizona is among the regions where Tesla plans to operate robotaxi services by the end of the year.
Tesla currently offers supervised ride-hailing services in Austin and the San Francisco Bay Area, where human safety monitors remain in the vehicles.
Its efforts to compete with Alphabet’s Waymo, which has run robotaxi operations in the Phoenix area since 2018, continue to draw heavy scrutiny from investors as the company shifts emphasis toward autonomy, robotics and AI.
Musk has also said Nevada and Florida are expected to follow on with robotaxi services.
Political factors fuel consumer hesitation
A new global survey suggests shifting political dynamics are influencing consumer attitudes toward EV purchases.
The poll, conducted in September and October among more than 26,000 EV owners across 30 countries for the Global EV Alliance, found that 53 per cent of respondents would avoid certain brands or countries for political reasons.
Tesla was cited by 41 per cent of those respondents, making it the most frequently mentioned brand.
Musk’s political associations — including past alignment with US President Donald Trump through the “Department of Government Efficiency,” public support for far-right groups in Europe, opposition to diversity initiatives, and a widely criticised gesture interpreted by many as a Nazi salute — have created polarisation among drivers.
While calls for Tesla boycotts have surfaced in several markets, the broader impact remains uncertain.
Together, the developments reflect the increasingly complex environment in which Tesla operates, balancing technological ambitions, regulatory hurdles, shareholder expectations and political scrutiny as it attempts to define the next phase of its growth.
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