The investment, announced alongside Tesla’s latest results, comes with assurances that production plans for the long-promised Cybercab robotaxi remain on course. 

After years of missed timelines, Tesla is asking the market not to judge it on car sales but also on whether its self-driving vision finally turns into a working business.

This will not come cheap as Chief Financial Officer Vaibhav Taneja said capital expenditure would climb beyond $20 billion this year, more than twice the $8.5 billion spent in 2025, as Tesla expands factories and builds the computing backbone needed for autonomy, robotics and new vehicles. 

Shares initially jumped in after-hours trading before easing back as the scale of the spending became clear.

Tesla wants investors to back future revenue from software, robotaxis and humanoid robots at a time when its core electric vehicle business is under pressure. 

Competition has increased, prices have fallen, and a key US tax incentive for EV buyers has ended. Revenue slipped about 3% last year to roughly $94.8 billion, the first annual decline in Tesla’s history.

On a conference call, Musk acknowledged the transition and again pressed the case for autonomy as Tesla’s defining metric. Analysts agree that the focus has shifted. “(That) makes rollout metrics – not deliveries – the most important leading indicator from here,” said Thomas Monteiro, senior analyst at Investing.com.

Tesla says it is already running a limited driverless robotaxi service in Austin, Texas, using Model Y vehicles equipped with its Full Self-Driving software. The Cybercab, designed without a steering wheel or pedals, is meant to scale that effort. 

Musk said he expects fully autonomous vehicles to operate across a large part of the United States by the end of the year, though he has previously set and missed similar targets.

On regulations, vehicles without traditional management do not fit current federal safety standards, and Tesla has not provided firm dates for approval or widespread unsupervised deployment. Even so, the company insists Cybercabs will be added to its robotaxi network and sold to consumers once production begins.

The spending surge will also fund projects that have sat on Tesla’s roadmap for years, including the Optimus humanoid robot, the Semi truck and the Roadster sports car. 

Musk warned that early production of both Cybercab and Optimus would be slow, saying last week it would be “agonisingly slow” before accelerating. On Wednesday, he said Tesla does not expect meaningful Optimus volumes until late 2026.

There are supply risks as well. Musk cautioned that a global shortage of memory chips could limit Tesla’s ambitions as demand from large technology firms soaks up capacity for data centres. 

He floated the idea of building a chip plant to protect the company. “If we don’t do that, we’re just going to be fundamentally limited by supply chain,” he said. “In a worst-case geopolitical situation, it would be quite a severe situation.”

While the car business faces challenges, one division is performing strongly. Tesla’s energy generation and storage unit posted record revenue of $3.84 billion in the fourth quarter, up 25.5% from a year earlier, driven by demand for grid-scale batteries that support renewable power and stabilise electricity networks. That growth has become a bright spot as vehicle margins are squeezed.

Financially, adjusted earnings per share beat expectations in the fourth quarter, but net income fell 61% to $840 million. Automotive gross margins, excluding regulatory credits, improved to 17.9%, well above forecasts. 

To protect volumes, Tesla has leaned heavily on discounts and cheaper versions of its best-selling models, and Wall Street expects deliveries to rise modestly to about 1.77 million vehicles this year.

Some investors are enthusiastic about the pivot. “With Tesla’s legacy EV business slowing, Tesla investors can take part in the scorching hot AI boom,” said Andrew Rocco, a stock strategist at Zacks Investment Research.

This comes after SpaceX, his private aerospace company, launched a December tender offer valuing the firm at $800 billion, double its worth in August, according to two investors who spoke to Forbes. 

Musk, who owns roughly 42% of SpaceX, sees his stake alone jump by an estimated $168 billion, bringing his total net worth to around $677 billion as of Monday noon Eastern Time.

SpaceX is preparing for a public offering in 2026, which could value the company near $1.5 trillion. Even without the IPO, Musk’s SpaceX holdings are now his single most valuable asset. 

Tesla is a major contributor too; his 12% stake in the electric vehicle company is estimated at $197 billion. Meanwhile, Musk is appealing a Delaware court decision that voided parts of his 2018 CEO Performance Award, which Forbes has discounted by 50% pending the outcome, currently estimated at $69 billion.

Musk’s reach extends beyond Tesla and SpaceX. His AI startup, xAI Holdings, is reportedly in talks to raise $15 billion in new funding at a $230 billion valuation, double its March 2025 valuation of $113 billion. Musk owns 53% of xAI, which Forbes estimates at $60 billion.

Tesla shareholders have also approved a record-breaking $1 trillion pay plan for Musk, contingent on achievements such as growing Tesla’s market capitalisation eightfold over the next decade. “Mars shot” targets like this show Musk’s vision of merging electric vehicles with robotics and AI.

Over the past five years, Elon Musk has repeatedly rewritten the record books, making the $600 billion worth no surprise.

He was worth $24.6 billion in March 2020, surpassed $100 billion in August 2020, $200 billion in 2021, $300 billion later that year, $400 billion in December 2024, and $500 billion in October 2025. His lead over the second-richest person, Google co-founder Larry Page, now sits at $425 billion.

SpaceX’s growth, particularly through Starlink’s expansion to over three million subscribers and ventures into aviation and maritime internet services, is a key driver of Musk’s wealth surge. 

Tesla, despite slower sales, has seen its stock climb 13% this year, partly due to investor confidence in Musk’s robotics and autonomous vehicle ambitions.

If the SpaceX IPO meets its projected valuation, Musk could soon become the first trillionaire in history.

And Bitget, the world’s largest Universal Exchanges, says users are already pushing billions in trading volume through its new real world asset-based investing products.

The platform recently announced that its U.S. Tokenized stock  markets have crossed $10 billion+ in global activity, a sign that everyday users are eager for simpler ways to invest in companies like Apple, Tesla, Google, and Amazon, using their local currency to USDT route they already understand.

Bitget also introduced smart AI tools like GetAgent, an AI-powered investing assistant that helps users understand the markets, track trends, and make more informed decisions, especially helpful for beginners trying to get into both stocks and crypto.

What’s New, And Why People Are Paying Attention

More of the brands Nigerians actually follow, Investors are focusing on big names like:

• Google (GOOGL)
• Apple (AAPL)
• Amazon (AMZN)
• Tesla (TSLA)
• Microsoft (MSFT)
• Meta (META)

These are the same companies that are trending on TikTok finance, Twitter Spaces, and WhatsApp investing groups.

You can invest in the U.S. stocks with USDT, no dollar account needed

Instead of dealing with bank transfers and fees, users simply fund USDT (the same way they normally buy crypto on P2P) and get exposure to top U.S. companies instantly.

Everything in one place

Bitget puts:

• Stocks
• Crypto (Bitcoin, Ethereum, Solana, etc)
• Futures
• Savings (Like traditional savings from banksEarn)
• GetAgent for AI-guided investing insights

…all under one balance and one app, and it works 24/7.

The idea is simple: instead of juggling between a crypto wallet, a stock brokerage, and a P2P platform, you just use one app.

What You Can Invest In Today

U.S. Stock Exposure (Simple & Easy-to-Understand)

• These tokenized stock-based products are enabled by tokens issued by the Ondo Global Markets platform. They are designed to give holders the same economic exposure as they would receive if they owned the underlying asset and invested dividends back into the stock. For everyday Nigerians, it works like this: You are holding Apple stocks in your wallet, and both profit and loss are all settled in USDT.
• Bitget now lists 30+ popular U.S. companies stock on our futures market, popularly known as tokenized stock futures and 100+ spots tokens on-chain, and new ones are added almost weekly.
• Low fees, flexible leverage: Bitget is running a promo with fees around 0.0065%, and investors can choose whether to keep things simple or use leverage.

Why Nigerians Say It Just “Feels Easier”

1. One app, one balance

Investors track everything, Bitcoin, Ethereum, Apple, Tesla, in the same place.
And with GetAgent, beginners can get personalized market insights, explanations, and guidance within the same app.

2. Naira flows make sense

Instead of trying to send money abroad:

• Buy USDT on P2P
• Bitget account is now funded
• Invest in U.S. companies

This matches how Nigerians already manage crypto.

3. No restricted market hours

U.S. markets open at 3:30pm Nigerian time, but Bitget offers access even outside regular U.S. trading hours, making it friendly for people who work during the day.

Quick Breakdown for Beginners

• What these stock-based markets are: Think of them as simple digital contracts that follow the price of popular U.S. companies. They move just like real stock, but everything settles in USDT.
• What they aren’t
• Not traditional share certificates
• No dividends
• No voting rights

They’re meant for easy price exposure, the kind many Nigerians already use in crypto.

Why This Matters to Nigerians Right Now

As devaluation and dollar scarcity continue, more people want:

• S. Stocks exposure
• Protection from naira volatility
• A simple platform they already understand
• Tools that help them learn and invest smarter

Bitget delivers all this, and GetAgent gives everyday users the kind of market insight that used to be reserved for professionals.

Thoughts

If you already use USDT for savings or trading, Bitget now gives you the missing piece: easy access to Apple, Tesla, Google, Amazon, plus an AI assistant (GetAgent) that helps you make informed investing decisions.

For many Nigerians, it’s becoming the simplest and smartest way to diversify, invest globally, and stay ahead of inflation without long bank processes.

The package, supported by over 75% of investors, is the largest corporate pay agreement in history.

The decision was announced at Tesla’s annual meeting in Austin, Texas, where Musk commended cheers and dancing robots. “What we are about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” he told shareholders.

The package is tied to performance milestones rather than a fixed salary. It consists of 12 tranches linked to Tesla’s operational achievements and market valuation. 

To unlock the full payout, Tesla’s market capitalisation must grow from about $1.5 trillion to $8.5 trillion over the next decade. Each milestone gives Musk an additional 1% of Tesla’s stock, meaning he could still secure tens of billions even if he falls short of the final target.

The board presented the package as essential for retaining Elon Musk and ensuring long-term growth. “If completed, these tranches of awarded shares follow strong improvements in revenue growth for Tesla,” said Brian Mulberry, senior client portfolio manager at Zacks Investment Management. 

“Will the growth offset these concerns of dilution, or, is this just giving Elon his wish of enough influence to shape the future of AI? That remains to be seen.”

Not all shareholders were convinced. Norway’s sovereign wealth fund, along with proxy advisory firms Glass Lewis and Institutional Shareholder Services, opposed the plan, calling it excessive. 

Still, supporters argued that Musk’s leadership and vision, ranging from self-driving cars to humanoid robots, remain central to Tesla’s future success.

Tesla Chair Robyn Denholm defended the decision, saying it reflected a turning point for the company. “Tesla is at an inflection point, I think I’ve said that 3,000 times over the last few weeks, and this last year has been a critical one in our history,” she said.

The new pay package replaces Elon Musk’s earlier $56 billion deal from 2018, which was struck down by a Delaware court earlier this year. Since then, Tesla has moved its incorporation to Texas and is appealing the ruling.

During the meeting, Musk outlined a series of upcoming projects, including the production of a steering-less “Cybercab” robotaxi, a new Roadster model, and plans for “a gigantic chip fab” that could involve a partnership with Intel.

He also insisted that the package is less about personal wealth and more about securing enough voting control to drive Tesla’s next phase of innovation.

Shareholders further approved the re-election of three board members, backed annual elections for all directors, and endorsed Tesla’s investment in Musk’s AI startup, xAI. Some abstained, signalling concerns about potential overlap between Musk’s ventures. 

“Many will be looking for the board to provide assurances and convictions that there are guardrails in place to be sure there’s not too much mixing of businesses,” said Jessica McDougall, partner at Longacre Square.

The decision, to be announced after the company’s annual general meeting in Austin, Texas, will boost Musk’s personal wealth to trillions of dollars and will also reveal how much trust investors have in his leadership and vision to transform Tesla from an electric vehicle maker into a company built around robotics and autonomous systems. 

A “yes” would reaffirm that faith and a “no” could unsettle markets.

The proposed package links Musk’s payout to several targets, which include Tesla delivering 20 million vehicles within a decade, putting one million robotaxis on the road, and raising its market capitalisation from around $1.5 trillion to as much as $8.5 trillion. 

Supporters call these goals huge but achievable under Musk’s leadership. On the other hand, some see them as an excessive risk that gives too much power to one man.

Among the most vocal opponents are Norway’s sovereign wealth fund and leading proxy advisory firms, who argue the package is “excessive” and “unwarranted.” Still, Elon Musk holds about 15% of Tesla’s shares and is allowed to vote them this time, making the pay package approval highly likely.

The vote also follows a case in Delaware, where Musk’s previous $50 billion package was voided earlier this year. Tesla’s relocation to Texas now allows shareholders to revisit that compensation under different corporate laws.

Tesla’s Chair, Robyn Denholm, in a letter to shareholders, urged support for the plan: “The fundamental question for shareholders at this year’s Annual Meeting is simple: Do you want to retain Elon as Tesla’s CEO and motivate him to drive Tesla to become the leading provider of autonomous solutions and the most valuable company in the world?”

Investors will also vote on whether Tesla should invest in xAI, Musk’s artificial intelligence company. He has previously said Tesla “should back the company,” but the board has not endorsed the move. Some see it as a way to speed up Tesla’s AI vision; others fear conflicts of interest, given Musk’s multiple ventures.

Another proposal seeks to abolish Tesla’s supermajority voting requirement, which currently demands a two-thirds majority to make key changes. Previous attempts to scrap it failed in 2019, 2021, and 2022. If passed, it would lower the threshold to a simple majority, and some investors believe it could consolidate Musk’s influence further.

A separate proposal calls for Tesla to adopt a political neutrality policy, prohibiting partisan activity by executives and assigning oversight to a board committee. Tesla’s board opposes the measure, saying its current governance already ensures transparency and accountability.

This measure indirectly tests investor mindset toward Musk’s outspoken political behaviour, including his public support for former U.S. President Donald Trump.

Despite the near certainty of passage, the vote has divided institutional investors. Norway’s sovereign wealth fund, several U.S. pension funds, and major proxy advisers such as ISS and Glass Lewis have all declared opposition. 

Musk’s base of retail shareholders, however, remains fiercely loyal and could provide the margin of victory, as they did in last year’s shareholder vote.

Musk’s personal ventures, public remarks, and unpredictable management style have repeatedly influenced Tesla’s stock and reputation. 

It’s been argued that Tesla’s board has become too aligned with him. Stephen Diamond, a corporate governance expert at Santa Clara University, observed: “There’s very little evidence of any dissent or daylight between the board and Musk on any issue. You just have to wonder whether that’s really a rational way to run the company.”

If the new pay package passes by a wide margin, it would strengthen Musk’s grip on Tesla and symbolically counter the Delaware court’s earlier ruling. But a narrow approval could lead to investor unease over Musk’s position and Tesla’s future governance.

Musk himself has tied his continued leadership to shareholder approval. Tesla’s board previously revealed that he might walk away if denied the package. 

According to a regulatory filing, Musk acquired 2.57 million Tesla shares last week through The Elon Musk Revocable Trust, spending close to $999 million at prices between $371.90 and $396.36 per share. 

This is his first open-market purchase since 2020, a move analysts interpret as both a vote of confidence and a calculated step to strengthen control ahead of an important shareholder meeting in November.

With this acquisition, Musk’s trust directly holds 96 million Tesla shares and indirectly controls more than 413 million, tightening his grip on the company as it prepares to vote on a proposed $1 trillion performance-based compensation package. 

The plan, set for 6 November, ties Musk’s payout to extraordinary milestones such as delivering 20 million vehicles, reaching an $8.5 trillion market cap, and deploying one million robotaxis and humanoid robots. If approved, Musk’s stake could rise to as much as 29%.

Tesla’s stock closed at $395.94 on Monday, up 7.36% and reversing its year-to-date decline of around 2%. Options activity also spiked, with more than 120,000 contracts trading around the $360 strike price, reflecting heightened bullish sentiment despite lower implied volatility. The rally extends a rebound in September, lifting Tesla’s shares nearly 10% month-to-date.

Still, the company’s operational realities are fraught. Global EV sales are down 10% this year. Europe has seen a sharp 40% decline, while China has slipped 6%. In the U.S., temporary strength is being fuelled by consumers rushing to take advantage of the $7,500 federal tax credit before it expires. 

Tesla’s American market share dropped to 38% in August, the lowest in eight years, a contrast to the 80% it held in 2020. Analysts warn that the third-quarter gains may prove short-lived once incentives fade.

Internally, there have been questions over Musk’s political involvement and its effect on Tesla’s brand. Board chair Robyn Denholm objected these concerns on Friday, saying: “It’s up to him” and adding that Musk is now “front and center” at Tesla after several months at the White House.

But in today’s fast-changing, hyper-connected, and competitive world, your 40s are more than just a checkpoint.

They represent a critical decade of transition where your personal brand must evolve to keep you not only visible but also valuable and future-ready as you approach your 50s.

By the time many professionals hit their 40s, they have already built careers, accumulated experiences, and earned recognition in their fields.

But here’s the real question: How do you ensure that your story doesn’t plateau but instead evolves to remain compelling?

This is where personal branding in your 40s becomes essential:

1. From Proving Yourself to Positioning Yourself

In your 20s and 30s, much of your personal brand is tied to proving yourself, showing you can deliver, grow, and compete. In your 40s, the focus shifts. It is no longer about chasing every opportunity but positioning yourself as someone who creates opportunities for others.

Take Ibukun Awosika, for instance. By her 40s, she had already proven herself as a successful entrepreneur. But she didn’t stop there, she positioned herself as a board leader, mentor, and advocate for women in business, which later elevated her to become the first female Chairperson of First Bank Nigeria.

Her brand wasn’t just about building a business but about creating platforms for others to rise.

Lesson: In your 40s, your brand should reflect influence and contribution, not just competence.

2. Leveraging Experience Without Becoming “Stuck”

One of the biggest traps professionals fall into in their 40s is comfort. You’ve put in the work, you’ve built systems that work for you, and suddenly you risk becoming rigid. But the world around you is disruptive and dynamic.

Barack Obama is a good example. By his early 40s, he could have settled as a respected law professor and state senator.

Instead, he rebranded himself onto the global stage with a message of hope and transformation, positioning himself for the U.S. presidency at 47. He showed that experience must be paired with adaptability to remain relevant.

Lesson: In your 40s, be open to re-inventing yourself and your expertise for new platforms and audiences.

3. Integrating Wellbeing and Mindfulness Into Your Brand

Your 40s are also a time where balance becomes non-negotiable. Career demands, family responsibilities, financial commitments, and health concerns all converge in this decade. If your personal brand is built only on professional achievements but neglects wellbeing, it may lack sustainability.

Think of Michelle Obama in her 40s. She could have defined her brand solely as the First Lady. Instead, she emphasized family values, wellness, and authenticity, inspiring millions with her “Let’s Move” campaign and later her memoir Becoming. Her brand became relatable and deeply human.

Lesson: In your 40s, your brand must reflect not just success, but also balance and authenticity.

4. Financial Intelligence as a Branding Element

By your 40s, conversations about money shift. It’s no longer about just earning more; it’s about sustaining wealth, making smarter financial choices, and preparing for the future.

Tony Elumelu provides a strong Nigerian example. By his 40s, he had already established himself in banking.

But his personal brand evolved beyond finance into wealth creation, entrepreneurship, and philanthropy through the Tony Elumelu Foundation. His financial intelligence became part of his brand identity.

Lesson: People in their 40s should be seen as strategic thinkers, not just hard workers.

5. The Power of Patience and Values

In your 20s and 30s, speed is celebrated promotions, recognition, and fast growth. But in your 40s, patience and values become your superpower. People now look at the substance behind your success.

Ngozi Okonjo-Iweala built her early reputation as a respected economist, but in her 40s, her brand shifted toward values-driven leadership and reform. That consistent brand later earned her global trust and influence, culminating in her appointment as the first African woman to head the World Trade Organization in her 60s.

Lesson: By your 40s, your brand must highlight integrity, vision, and principles.

6. Building Your Legacy Narrative

One of the most strategic questions you can ask in your 40s is: What do I want to be remembered for?

This isn’t about retirement planning, it’s about legacy planning. Your brand should begin to reflect the seeds of your long-term impact.

Take Elon Musk, for example. By his 40s, he wasn’t just building companies (Tesla, SpaceX, SolarCity); he was shaping a narrative of global impact around clean energy, space exploration, and the future of humanity. Whether you agree with his style or not, his brand is strongly tied to legacy.

Lesson: In your 40s, start designing your impact story, not just your career story.

On a final note, Personal branding in your 40s is about evolution, not reinvention. You already have a foundation; now it’s about ensuring it adapts to changing realities, remains visible in global conversations, and reflects not just what you do but who you are becoming.

As you step into your 50s, your personal brand should feel less like a résumé and more like a story of relevance, resilience, and responsibility.

The world needs your experience, but it also needs your adaptability, balance, and vision. Your 40s give you the chance to shape that story intentionally, authentically, and powerfully.

This grant, amounting to 96 million shares, is Tesla’s answer to the void left by a Delaware court’s cancellation of Musk’s original $56 billion compensation deal. The court had ruled that the earlier package was tainted by conflicts of interest and lacked proper oversight. 

Tesla is not waiting for the final outcome of Musk’s appeal. Instead, it’s trying to secure his loyalty during a period of waning sales, political fallout, and rising competition.

Tesla is shedding its identity as an electric carmaker as Musk is doubling down on robotaxis, full autonomy, and humanoid robots like the Optimus project. The company has already started a limited robotaxi pilot in Austin, Texas, using retrofitted Model Ys, but it’s yet to gain regulatory clearance for wider deployments, especially in California, where Tesla is now quietly testing ride-hailing services without confirming if they involve autonomous tech.

Meanwhile, the company’s ageing vehicle lineup, falling demand, and Musk’s increasingly controversial public stances have left investors uneasy. Tesla shares are down roughly 25% this year. 

In China, shipments from its Shanghai plant slipped 8.4% year-on-year in July, under pressure from rivals like BYD and Xiaomi. In the U.S., electric vehicle subsidies are being slashed, cutting into buyer incentives.

Still, some investors see the new share award as a stabilising force. Gary Black, a former Tesla investor, said on X: “This should be viewed very favorably by Tesla shareholders. It aligns Elon’s incentives with long-term value creation and clears up uncertainty.”

Others are unconvinced. Corporate governance expert Charles Elson called the move “simply a repackaged version of what was done years ago and was ruled improper by a judge.” He added, “It renders the Delaware court decision effectively meaningless.”

The shares will only vest if Musk remains in a top executive role through 2027. They come with a five-year lock-up, barring sales except for tax payments or the cost to exercise them, set at $23.34 per share, matching the price of the original 2018 award. 

If the courts eventually reinstate the 2018 plan, this new award will either be forfeited or offset to avoid duplication.

The decision to offer Musk the package came from a two-member committee made up of board chair Robyn Denholm and independent director Kathleen Wilson-Thompson. They acknowledged Musk’s competing demands but defended the grant. 

“While we recognise Elon’s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging… we are confident this award will incentivise Elon to remain at Tesla,” the filing said.

Elon Musk, who controls about 13% of Tesla shares, has made it clear that retaining his leadership means increasing his voting power. This latest award aims to do just that, and fast, especially with an upcoming shareholder meeting scheduled for November 6, where a longer-term compensation plan will be tabled.

Tesla’s transition is ideological. Musk has reportedly shelved plans for a low-cost EV in favour of the “Cybercab,” a futuristic, steering-wheel-free robotaxi due to begin production in 2026.

But can a company that was built on disrupting the auto industry survive while its founder is pulled in a dozen directions—from SpaceX to Neuralink, xAI to X (formerly Twitter), and now, even into U.S. politics, where Musk’s recent endorsement of Donald Trump and formation of a new party have split opinion.

The deal comes as an important lifeline for Samsung’s struggling contract chipmaking division, which has been losing billions. 

With this agreement, the tech giant now has a clearer path to sustainability and renewed relevance in the global semiconductor space.

The South Korean firm had previously faced challenges in securing major clients for its Texas plant, forcing delays and casting doubts over its viability. Now, the site has found purpose.

Samsung confirmed the agreement last week but had withheld the client’s identity due to a confidentiality clause. Tesla CEO Elon Musk, however, made it public in a pair of posts on X. 

“Samsung agreed to allow Tesla to assist in maximising manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house,” he stated. In a follow-up, he added, “The $16.5B number is just the bare minimum. Actual output is likely to be several times higher.”

The chips in question, Tesla’s upcoming AI6 processors, are expected to build on the Dojo supercomputer architecture and will support Tesla’s next-gen Full Self-Driving (FSD) system, humanoid robots (Optimus), and AI data centres. 

Production is slated to begin between 2027 and 2028 using Samsung’s advanced 2nm process, which offers 25% better power efficiency and 12% higher performance compared to its 3nm predecessor.

Musk’s unusual level of involvement shows just how critical the AI6 chip is to Tesla’s vision. It also stresses a rare arrangement: a customer directly involved in the operations of a semiconductor foundry. 

This level of collaboration is almost unheard of in the chipmaking world and represents a major vote of confidence in Samsung’s process capabilities, despite its recent setbacks.

Samsung’s foundry division, which focuses on logic chips designed by external clients, posted a staggering loss of over $3.6 billion in the first half of 2025. The loss was attributed to underutilised capacity and the exodus of key clients, many of whom opted for rival TSMC due to superior process technology. 

Market research firm TrendForce estimates Samsung’s foundry market share has plunged to just 7.7%, while TSMC holds a commanding 67.6%.

“This order is quite meaningful,” said Ryu Young-ho, a senior analyst at NH Investment & Securities, pointing to the fact that Samsung’s Taylor plant had “virtually no customers” until now.

The Tesla contract is now Samsung’s largest foundry deal to date, accounting for roughly 7.6% of its annual revenue. Its importance goes beyond commercial value. 

The deal may bolster South Korea’s negotiations with Washington, as the country pushes for deeper tech alliances and exemption from looming 25% U.S. tariffs. It also aligns with the objectives of the U.S. CHIPS Act, which has helped subsidise the expansion of Samsung’s Texas fab.

Analysts believe the deal could help arrest the bleeding in Samsung’s foundry division. Pak Yuak of Kiwoom Securities noted it could reduce losses and provide much-needed credibility at a time when investors and stakeholders have raised concerns about the company’s future in advanced chip production.

TSMC still holds the upper hand technologically and commercially, supplying giants like Apple, Nvidia, and Qualcomm. But the Tesla-Samsung partnership introduces a new dynamic, one where deep collaboration and physical proximity (Musk lives near the Texas plant) could create an edge in speed, customisation, and oversight.

This comes just a day after he floated the possibility of Tesla shareholders voting on whether the automaker should invest in xAI, a change that could increase ties between the two companies without formally merging them. 

“It would be great if Tesla could invest,” he noted earlier, but stressed that shareholder approval would be necessary.

Despite the speculation, Tesla and xAI have yet to issue official statements addressing the merger rumours or clarifying their future relationship.

xAI, Musk’s AI startup behind the controversial Grok chatbot, has grown aggressively since its $33 billion acquisition of X (formerly Twitter) in March 2025. 

That acquisition placed the combined group’s valuation at $80 billion, but sources told Reuters that xAI had discussed valuations as high as $200 billion in its latest funding talks. 

Whether those numbers show the company’s real market potential is still uncertain, as Musk has publicly downplayed suggestions of a fresh capital raise: “We have plenty of capital.”

What is apparent, however, is that xAI is positioning itself as the AI backbone of Musk’s expanding industrial network. Its Grok chatbot has already been deployed in Starlink’s customer support operations, with integration into Tesla’s Optimus robots also on the horizon.

On X, Grok facilitates real-time interactions, further tightening the web of Musk-owned enterprises.

In July 2025, xAI raised $10 billion, half through equity led by Morgan Stanley and half through debt financing. Notably, SpaceX, another Musk company, contributed $2 billion to this round, marking its first known external investment into xAI. 

Reports from The Wall Street Journal indicated that SpaceX’s involvement was part of a $5 billion equity round. 

Operationally, xAI is pushing infrastructure goals. Its Memphis-based supercomputer, Colossus, already runs on over 200,000 GPUs, with plans to scale to one million. The firm is targeting $1 billion in revenue by the end of 2025 and forecasts $19 billion by 2029, supported by an $18 billion investment into its compute backbone.

Despite its commercial momentum, Grok stumbled in July when it produced antisemitic and offensive content, triggering a public apology and a promised codebase review. Still, Musk stands by the chatbot, calling it “the smartest AI in the world” and promising deeper integration across his companies.

From a governance standpoint, merging Tesla, a publicly traded company, with xAI, which remains private, could ignite regulatory challenges. Musk’s current strategy appears to favour operational integration over corporate consolidation. 

Embedding Grok into Tesla vehicles, Optimus robots, and Starlink services could offer the benefits of synergy without the legal complexities of a merger.

For now, Musk says Tesla will not merge with xAI. But as history shows, in Musk’s empire, “no” today doesn’t always mean “never.”