Elon Musk denied a report that his startup xAI has discussed a deal in which Tesla would share future revenue from Full Self-Driving and more in exchange for using its AI models.
Tesla stock rose modestly early Monday.
The The Wall Street Journal, citing sources, reported Saturday that Tesla could license AI models from Musk's xAI for FSD and share some of that revenue, perhaps up to half, the WSJ reported. The startup also reportedly might help develop other features, including a digital voice assistant like Apple's Siri or software for Tesla's humanoid robot Optimus.
Musk Says xAI-Tesla Report 'Not Accurate'
Musk, posting on his social site X, said he hadn't read the article, but said the idea of revenue sharing is "not accurate."
He added, "Tesla has learned a lot from discussions with engineers at xAI that have helped accelerate achieving unsupervised FSD, but there is no need to license anything from xAI."
No formal revenue-sharing or partnership has been established between Tesla and xAI, but there is already a close relationship.
The startup xAI has hired a number of Tesla employees. Last year, Musk diverted thousands of Nvidia AI chips from Tesla to xAI, later saying that the EV giant had "no place" for them.
Musk has also threatened to shift AI and robotics work to xAI if he didn't receive higher Tesla compensation. More recently, Musk has suggested Tesla could invest in xAI.
Tesla's board, not known for its independence, hasn't signaled any concern about xAI. But several shareholders have filed suits in the Delaware Court of Chancery, claiming that the shift in resources to the startup hurts Tesla investors.
Elon Musk will hold a Tesla robotaxi event on Oct. 10, though it's unclear what investors will see.
Futures: iPhone 16 Due, Tesla-xAI In Focus
Tesla Stock
Tesla shares rose modestly before Monday's open.
Last week, Tesla stock fell 1.6% to 210.73 in a round trip. On Thursday, shares popped above their 50-day line and cleared a 238.22 short-term high, buoyed by robust China sales and the EV giant's FSD rollout plans. That offered an aggressive entry for TSLA stock.
On Friday, Tesla plunged 8.45%, back below the 50-day line.
Tesla stock has a 271 cup-base buy point, according to MarketSurge.
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