Will Tesla and xAI Merge? Elon Musk’s Biographer Thinks It’s Likely

June 2, 2025

By Karan Singh

Not a Tesla App

As Tesla is at the cusp of launching its Robotaxi network, which hinges entirely on the application of AI and neural networks in the real world, the question of the company’s relationship with Musk’s other AI venture - xAI, has never been larger.

In a recent interview with CNBC, Elon’s biographer, Walter Isaacson, who has had unparalleled access to Elon and his thought process, shared his perspectives. Isaacson’s view is a fantastic analysis of why Tesla and xAI are intertwined under Elon’s guidance, even if they’re technically two separate companies for now.

Symbiotic Relationship

Speaking on CNBC, Isaacson stated that he believes wholeheartedly that a merger between xAI and Tesla is likely to happen. He explained that from its inception, xAI was envisioned by Elon to solve “real-world AI,” almost exactly what Tesla is doing with vehicles and robots.

Elon’s vision for Tesla requires harnessing the massive amounts of data generated by Tesla’s fleet - and soon, its Optimus humanoid robots. All that video, audio, and other sensor data, along with real and perceived feedback shapes the AI used in these products.

Isaacson noted that Elon feels a need to control the companies involved in developing AI, which further supports the logic of a future merger. xAI recently acquired X for $33 billion, and according to a Financial Times report, it’s now looking to raise $300 million at a valuation of $113 billion. Tesla’s current valuation is $1.06 trillion.

More AI Is Needed

While Tesla possesses an unparalleled dataset of real-world, physical interactions, xAI is heavily focused on AI models that will be increasingly powerful in the future. While Tesla may not need access to these models now, that’s likely to change in the future.

We’ll soon look back at FSD and recognize how much smaller and more contained that challenge was compared to Optimus. Driving is just a narrow slice of what a humanoid robot must master—it’s essentially a robot on rails, confined to a structured environment with a strict set of rules. In contrast, Optimus must navigate the full complexity and unpredictability of the real world.

Musk’s Perspective

While Isaacson’s reasons for a potential merger are clear, Elon has shied away from the topic in recent interviews. There is a distinct corporate relationship between Tesla and xAI, but he has so far stopped short of mentioning a potential merger. He recently said that a merger is “not out of the question,” but ultimately, it’s up to Tesla shareholders.

Elon’s public stance has been that the two companies will work closely together, with Tesla’s shareholders potentially being offered a stake in xAI in the future. Musk currently owns about 59% of xAI and about 13% of Tesla.

Ultimately, whether the two companies formally merge or continue in a deeply integrated partnership may be more of a question for shareholders. From a technology and product perspective, the fusion is already happening, with Grok confirmed to be coming to Tesla vehicles in the future.

Tesla FSD in Europe: June Update

June 14, 2025

By Karan Singh

Not a Tesla App

The road to bringing FSD to Europe has been a long and complex one and filled with regulatory and bureaucratic hurdles. Elon Musk, as well as other members of Tesla’s AI team, have previously voiced their grievances with the regulatory approval process on X.

However, it appears that there is finally some progress in getting things moving with recent changes to upcoming autonomy regulations, but the process still seems slow.

Waiting on the Dutch

Elon commented on X recently, stating that Tesla is waiting for approval from Dutch authorities and then the EU to start rolling out FSD in Europe. Tesla is focusing on acquiring approvals from the Dutch transportation authority, which will provide them with the platform they need to gain broader acceptance in Europe. Outside of the Netherlands, Tesla is also conducting testing in Norway, which provides a couple of avenues for them to obtain national-level approval.

The frustration has been ongoing, with multiple committee meetings bringing up autonomy regulation but always pulling back at the last second before approving anything. The last meeting on Regulation 157, which governs Automated Lane Keeping Systems, concluded with authorities from the UK and Spain requesting additional time to analyze the data before reaching a conclusion.

Tesla, as well as Elon, have motioned several times for owners to reach out to their elected representatives to move the process forward, as it seems that Tesla’s own efforts are being stymied.

This can seem odd, especially since Tesla has previously demoed FSD working exceptionally smoothly on European roads - and just did it again in Rome when they shared the video below on X.

FSD Supervised testing in Rome, Italy

Pending regulatory approval pic.twitter.com/TXh3uQIfrx
— Tesla Europe & Middle East (@teslaeurope) June 12, 2025

DCAS Phase 3

While the approval process has been slow, Kees Roelandschap pointed out that there may be a different regulatory step that could allow FSD to gain a foothold in Europe.

According to Kees, the European Commission is now taking a new approach to approving ADAS systems under the new DCAS Phase 3 regulations. The Commission is now seeking data from systems currently operational in the United States that can perform System-Initiated Maneuvers and don’t require hands-on intervention for every request.

This is key because those are two of the core functionalities that make FSD so usable, and it also means that there may not be a need to wait years for proper regulations to be written from scratch. Now, the Commission will be looking at real-world data based on existing, deployed technology, which could speed up the process immensely.

What This Means

This new, data-driven regulatory approach could be the path for Tesla to reach its previous target of September for European FSD. While the cogs of bureaucracy are ever slow, sometimes all it takes is a little data to have them turn a bit faster in this case.

Alongside specific countries granting approval for limited field testing with employees, there is some light at the end of the tunnel for FSD in Europe, and hopes are that a release will occur by the end of 2025. With Europe now looking to North America for how FSD is performing, Tesla’s Robotaxi results could also play a role.

Tesla Launches 'TeslaVision' Contest With Big Prizes — See Last Year’s Winner [VIDEO]

June 13, 2025

By Karan Singh

Not a Tesla App

Tesla’s marketing has always been relatively unconventional, relying on word-of-mouth rather than traditional advertising. The passion of the owner’s community is always massive, but it is especially high now with the launch of the Robotaxi network just around the corner.

Tesla is now tapping into that spring of fan creativity and announced the TeslaVision video contest, with some seriously impressive prizes up for grabs.

Announcing the TeslaVision fan video showcase

Tesla owners & supporters have always been able to see our products & mission for what they truly are.

Your word of mouth has made Tesla what it is today.

The OGs will remember that in 2017, we held our first video contest. 8 years… pic.twitter.com/6pPpkqmqOH
— Tesla (@Tesla) June 10, 2025

The Contest

The core of the contest is simple. Create a video that shows how your Tesla gives you more in life. Tesla is looking for submissions that highlight themes of freedom, safety, fun, and convenience.

Prizes

The prizes definitely make this contest worth entering if you’re good with a camera and have some basic video editing abilities.

For North America, the prizes include a brand new Model Y AWD Long Range, alongside an all-expenses-paid trip to Austin for a tour of Giga Texas. The grand prize winner will also be able to custom order their Model Y, allowing them to select their preferred wheels and color.

The two runners-up won’t get a Model Y, but they’ll also enjoy an all-expenses-paid trip to Giga Texas for a tour of the factory.

The travel and tour include lodging in Austin for 2 nights, as well as economy-class round-trip tickets from anywhere in North America. Tesla will also provide a vehicle for use during the trip.

Hopefully, these winners will also have the opportunity to experience the Robotaxi network while they’re in Austin, as it’s expected to be opened to the public later this month.

Project Loveday

For long-time followers of Tesla, this contest may feel familiar. The contest is a direct throwback to the 2017 Project Loveday contest, which was inspired by a letter to Tesla from a 10-year-old aspiring marketer. That contest was won by MKBHD, with his submission below:

How to Enter

If you’re ready to start filming, here are the key pieces of information you’ll need to know:

Video must be 90 seconds or less
Video must be uploaded to YouTube with a public URL
Make a post on X and Instagram tagging “@Tesla” and include the words “TeslaVision contest” in the post.
Provide links to both social media posts in your submission to Tesla’s form
Provide your personal details in the form
You have until July 17th, 2025, or until Tesla receives 10,000 entries, whichever comes first.

You can find the official submission form and all region-specific details on Tesla's website.