Elon Musk wants Tesla to invest in his startup xAI. Stephen Hawke has taken up the cause.
This little-known 56-year-old psychiatrist from Florida has emerged as the face of a shareholder campaign aimed at persuading Tesla's board to inject capital into the artificial intelligence startup—which earlier this year surpassed a $100 billion valuation.
This Tesla investor and superfan stated that he decided to submit a shareholder proposal “after considering Elon Musk's posts about a potential partnership between Tesla and xAI.”
In his email, he wrote: "My commitment to Tesla stems from firsthand experience owning multiple Tesla vehicles and a solar roof since 2013, and I've been particularly inspired by Elon Musk's genius vision. “These vehicles include two Model S, four Model 3, and one Cybertruck.”
Hawk is well-known within Tesla's shareholder community. He has posted multiple selfies from Tesla events on X, featuring alongside prominent figures in the social media ecosystem—such as Sawyer Merritt and Alexandra Merz, known online as “Tesla Baby Boom Mom.” Hawk proposed to his husband at a Tesla store inside a Tampa, Florida mall (he described the location as being next to a jewelry store).
The shareholder proposal has been included in Tesla's recently filed proxy materials, where the board seeks shareholder approval for a new trillion-dollar compensation plan for Musk.
Hawke's proposal requests the board to authorize an investment in xAI “in such amount and form as deemed appropriate.” While the board recommended against the other nine shareholder proposals, it provided no guidance on the xAI investment. Shareholders will vote on these proposals at the annual meeting on November 6.
As the dual CEO of Tesla and xAI, Musk has explicitly endorsed Tesla's investment in xAI. This two-year-old AI startup not only developed the chatbot Grok but also serves as a critical component in Tesla's Optimus robot design. Last year, he initiated a poll on X to gauge fan support for this investment. In the months that followed, he repeatedly urged shareholders to submit proposals during Tesla's earnings conference calls.
Musk stated in July: “We will act in accordance with shareholder wishes.”
This potential investment comes amid scrutiny over Musk's time allocation and commitment. Musk previously threatened to establish a separate artificial intelligence product company if he failed to secure 25% voting control of Tesla. Some question whether xAI competes with Tesla—the former focuses on developing large language models and pursuing general artificial intelligence, while the latter concentrates on what Musk calls “real-world AI,” namely building the intelligent core for robots and self-driving cars.
Hawk and other shareholders backing the proposal argue the investment would ensure Tesla investors share in the fruits of Musk's work outside the company.
Despite headwinds in its core automotive business, Tesla's stock continues to surge on expectations of its self-driving taxi plans and “infinite growth” vision. Its market capitalization has surpassed $1.2 trillion—roughly four times that of Toyota, the world's most profitable automaker—marking a rise of over 70% from a year ago.
Hawk stated: “Formally establishing this partnership is crucial to ensuring both parties gain clear mutual benefits.”
Tesla and xAI have already commenced collaboration. The two companies are currently co-developing an “AI companion” named Grok, which serves as a voice assistant in select Tesla models. Simultaneously, xAI procures industrial batteries from Tesla to power its data centers. Musk revealed that the Grok system has been integrated into the Optimus humanoid robot—the very robot at the heart of Tesla's latest ambitious plan.
According to The Wall Street Journal, this summer, SpaceX—the rocket company where Musk also serves as CEO—invested $2 billion in xAI's $5 billion equity financing round.
Sources familiar with the matter disclosed that Hawk was one of approximately 140 shareholders who submitted cross-company investment proposals to the board in late July. Shareholders rushed to submit proposals before Tesla filed its proxy statement after the company set the date for its annual shareholder meeting.
Hawk, a seasoned investor, stated that while he was unsure of the exact reason his proposal was adopted, he speculated it might be because he was the first eligible proposer. The proposal was crowdfunded and coordinated by Melzer, an organizer active in Tesla's shareholder community who has gained prominence.
