Elon Musk is putting Grok in the driver's seat—literally. The Tesla (TSLA, Financial) CEO announced that his AI chatbot, developed by xAI, will begin rolling out in Tesla vehicles as early as next week. This follows the launch of Grok 4, the latest version of the bot, which Musk says offers better voice interactions and stronger performance compared to rival models. It also comes days after xAI removed antisemitic responses posted by the bot on X, prompting new guardrails to block similar content before it goes live.
Investors have long speculated about deeper ties between Tesla and Musk's AI ventures—and this move could be one step closer. Tesla disclosed earlier this year that it recorded nearly $200 million in transactions with xAI in 2023, including $191 million from selling Megapack energy storage systems. While Musk once floated a $5 billion Tesla investment in xAI in a public poll on X, no deal has materialized yet. But with EV sales softening, some investors have argued that tighter alignment with AI—especially voice and autonomous capabilities—could spark renewed growth.
There's also the bigger picture. Musk has already merged xAI with X, in a deal that pegged xAI's valuation at $80 billion. That opens the door for more integration between Tesla, X, and xAI—especially if Grok becomes a key feature in Tesla's robotaxi roadmap. For now, Grok's debut inside vehicles could serve as a proof-of-concept for what a vertically integrated Musk-led tech stack might look like—where AI, energy, mobility, and social media all collide inside the car.
