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Tesla (NASDAQ:TSLA) CEO Elon Musk said on July 25 he and the board of the electric vehicle company will discuss making a $5 billion investment in his artificial intelligence startup xAI, fueling concerns about a conflict of interest.

On July 23, Musk launched a poll asking users on social media platform X whether Tesla should invest $5 billion in xAI. More than two-thirds of nearly 1 million respondents voted in favor. 

Officially founded in July last year, xAI, which is building a chatbot called Grok, raised $6bn at a valuation of $18bn in May.

Musk is aiming to catch up with rivals OpenAI and Anthropic, which have set the early pace in the race to develop intelligence chatbots. 

Tesla's second-quarter earnings missed analyst expectations, with earnings per share (EPS) coming in at 52 cents, below the anticipated 61 cents and last year's 91 cents. However, revenue exceeded expectations, reaching $25.5 billion compared to the projected $24.5 billion and last year's $24.9 billion.

Despite the revenue beat, the company's operating profit margin was lower than expected, at 6.3% compared to the anticipated 8%. Additionally, free cash flow also fell short at $1.3 billion, below the projected $1.9 billion. 

The company reported a $622 million restructuring charge, likely arising from large layoffs made earlier in the year.

Editor：Vicky

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