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Elon Musk

Musk says xAI has acquired X in $33 billion stock deal

The acquisition comes two and a half years after Musk first acquired X, formerly known as Twitter.

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Credit: Elon Musk | X

Elon Musk announced this week that xAI has acquired his social media platform X, performed through an all-stock transaction expected to make it easier to raise additional funding for the combined entities.

In a post on X on Friday, Musk said that xAI acquired X in an all-stock transaction, with xAI valued at $80 billion and X at $33 billion, considering a $45 billion value less $12 billion in debt for the social media company. He adds that combining the companies “will deliver smarter, more meaningful experiences,” along with offering a “platform that doesn’t just reflect the world but actively accelerates human progress.”

A report from the Wall Street Journal said that shares of X and xAI would be exchanged for shares in a holding company dubbed the xAI Holdings Corp., while the report also claimed that executives at both firms believed merging would make it easier to raise funding.

You can read Musk’s full statement on the acquisition below.

xAI has acquired X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).

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Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at unprecedented speed and scale.

X is the digital town square where more than 600M active users go to find the real-time source of ground truth and, in the last two years, has been transformed into one of the most efficient companies in the world, positioning it to deliver scalable future growth.

xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach. The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.

I would like to recognize the hardcore dedication of everyone at xAI and X that has brought us to this point. This is just the beginning.

Thank you for your continued partnership and support.

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READ MORE ON XAI: Elon Musk’s xAI gets investment from Nvidia in recent funding round: report

Musk officially purchased X, then called Twitter, and took it private for $44 billion in October 2022. The Tesla CEO then launched xAI in 2023, along with debuting the company’s first product, Grok, first as a large language AI model that was only available on X. The model has since been developed more and has added image generation, and the company last month debuted the latest-gen Grok 3 update.

Last month, it was also reported that xAI’s upcoming $700 million data center in Atlanta would be operated collaboratively with X, which is expected to eventually utilize over 12,000 Nvidia GPUs. The AI firm also activated an even larger data center in Memphis, Tennessee last year, dubbed Colossus, and expected to sport 200,000 Nvidia GPUs upon completion.

Elon Musk says xAI will develop an AI game studio

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

Elon Musk

Tesla addresses door handle complaints with simple engineering fix

“We’ll have a really good solution for that. I’m not worried about it.”

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Tesla Model S self-presenting door handle
Tesla Model S self-presenting door handle (Credit: TesBros)

Tesla is going to adjust one heavily scrutinized part of its vehicles after recent government agencies have launched probes into an issue stemming from complaints from owners.

Over the past few days, we have reported on the issues with Tesla’s door handle systems from both the Chinese and American governments.

In China, it dealt with the Model S, while the United States’ National Highway Traffic Safety Administration (NHTSA) reported nine complaints from owners experiencing issues with 2021 Model Ys, as some said they had trouble entering their car after the 12V battery was low on power.

Bloomberg, in an interview with Tesla Chief Designer Franz von Holzhausen, asked whether the company planned to adjust the door handle design to alleviate any concerns that regulatory agencies might have.

Regarding the interior latch concerns in the United States:

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  • Von Holzhausen said that, while a mechanical door release resolves this problem, Tesla plans to “combine the two” to help reduce stress in what he called “panic situations.”
  • He also added that “it’s in the cars now…The idea of combining the electronic and the manual one together in one button, I think, makes a lot of sense.” Franz said the muscle memory of reaching for the same button will be advantageous for children and anyone who is in an emergency.

Regarding the exterior door handle concerns in China:

  • Von Holzhausen said Tesla is reviewing the details of the regulation and confirmed, “We’ll have a really good solution for that. I’m not worried about it.”

The new Model Y already has emergency mechanical door release latches in the back, but combining them in future vehicles seems to be an ideal solution for other vehicles in Tesla’s lineup.

It will likely help Tesla avoid complaints from owners about not having an out in the event of a power outage or accident. It is a small engineering change that could be extremely valuable for future instances.

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Elon Musk

Elon Musk: Self-sustaining city on Mars is plausible in 25-30 years

Musk noted that true self-sufficiency requires Mars to develop “all the ingredients of civilization.”

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Credit: Elon Musk/X

Elon Musk has stated that a self-sustaining human settlement on Mars could be established in 25-30 years, provided launch capacity increases dramatically in the coming decades. 

Speaking at the All-In Summit, the SpaceX CEO said building a self-sufficient colony depends on exponential growth in “tonnage to Mars” with each launch window, highlighting Starship’s role as the company’s pathway to interplanetary initiatives.

Mars settlement goals

Musk noted that true self-sufficiency requires Mars to develop “all the ingredients of civilization,” from food production to microchip manufacturing. Starship Version 3 is expected to support the first uncrewed Mars test flights, while future iterations could reach 466 feet in height and deliver larger payloads critical for settlement. Ultimately, Musk stated that an aggressive timeline for a city on Mars could be as short as 30 years, as noted in a Space.com report.

“I think it can be done in 30 years, provided there’s an exponential increase in the tonnage to Mars with each successive Mars transfer window, which is every two years. Every two years, the planets align and you can transfer to Mars. 

“I think in roughly 15, but maybe as few as 10, but 10-15-ish Mars transfer windows. If you’re seeing exponential increases in the tonnage to Mars with each Mars transfer window, then it should be possible to make Mars self-sustaining in about call it roughly 25 years,” Musk said. 

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Starship’s role

Starship has flown in a fully stacked configuration ten times, most recently in August when it completed its first payload deployment in orbit. The next flight will close out the Version 2 program before transitioning to Starship Version 3, featuring Raptor 3 engines and a redesigned structure capable of lifting over 100 tons to orbit.

While SpaceX has demonstrated Super Heavy booster reuse, Ship reusability remains in development. Musk noted that the heat shield is still the biggest technical hurdle, as no orbital vehicle has yet achieved rapid, full reuse.

“For full reusability of the Ship, there’s still a lot of work that remains on the heat shield. No one’s ever made a fully reusable orbital heat shield. The shuttle heat shield had to go through nine months of repair after every flight,” he said. 

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Tesla called ‘biggest meme stock we’ve ever seen’ by Yale associate dean

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Credit: Tesla

Tesla (NASDAQ: TSLA) is being called “the biggest meme stock we’ve ever seen” by Yale School of Management Senior Associate Dean Jeff Sonnenfeld, who made the comments in a recent interview with CNBC.

Sonnenfeld’s comments echo those of many of the company’s skeptics, who argue that its price-to-earnings ratio is far too high when compared to other companies also in the tech industry. Tesla is often compared to companies like Apple, Nvidia, and Microsoft when these types of discussions come up.

Fundamentally, yes, Tesla does trade at a P/E level that is significantly above that of any comparable company.

However, it is worth mentioning that Tesla is not traded like a typical company, either.

Here’s what Sonnenfeld said regarding Tesla:

“This is the biggest meme stock we’ve ever seen. Even at its peak, Amazon was nowhere near this level. The PE on this, well above 200, is just crazy. When you’ve got stocks like Nvidia, the price-earnings ratio is around 25 or 30, and Apple is maybe 35 or 36, Microsoft around the same. I mean, this is way out of line to be at a 220 PE. It’s crazy, and they’ve, I think, put a little too much emphasis on the magic wand of Musk.”

Many analysts have admitted in the past that they believe Tesla is an untraditional stock in the sense that many analysts trade it based on narrative and not fundamentals. Ryan Brinkman of J.P. Morgan once said:

“Tesla shares continue to strike us as having become completely divorced from the fundamentals.”

Dan Nathan, another notorious skeptic of Tesla shares, recently turned bullish on the stock because of “technicals and sentiment.” He said just last week:

“I think from a trading perspective, it looks very interesting.”

Nathan said Tesla shares show signs of strength moving forward, including holding its 200-day moving average and holding against current resistance levels.

Sonnenfeld’s synopsis of Tesla shares points out that there might be “a little too much emphasis on the magic wand of Musk.”

Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever

This could refer to different things: perhaps his recent $1 billion stock buy, which sent the stock skyrocketing, or the fact that many Tesla investors are fans and owners who do not buy and sell on numbers, but rather on news that Musk might report himself.

Tesla is trading around $423.76 at the time of publication, as of 3:25 p.m. on the East Coast.

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