Tesla stock rises as Musk’s xAI reportedly moves to raise $15bn

Tesla shares rose in early trading after news emerged that xAI, the fast-growing artificial intelligence (AI) venture backed by Elon Musk, is negotiating a fresh $15 billion raise.

According to investors, the renewed interest in xAI is helping lift sentiment around Tesla, as the CEO’s expanding influence in the AI race continues to feed long-term optimism.

As per the reports, the potential raise could more than double xAI’s previously reported valuation of around $113 billion.

Market watchers noted that this momentum strengthens Musk’s broader technology ecosystem, which increasingly intersects with Tesla’s efforts in full self-driving software and robotics.

However, analysts have cautioned that the financial impact on Tesla remains indirect for now. 

Although enthusiasm around AI is boosting the company’s narrative, Tesla still faces pressure from elevated research spending and tighter margins, leaving the stock sensitive to execution risks.

The new raise is expected to support xAI’s massive infrastructure ambitions, including its Memphis supercomputing project, powered by the “Colossus” data-centre complex.

Still, Tesla investors will be watching closely to see whether Musk’s growing commitments at xAI influence Tesla’s capital strategy or product timelines in the coming quarters.