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Analyst Suggests Tesla’s $5 Billion Investment in xAI Could Yield Significant Returns

$Tesla (TSLA.US)$  An analyst has calculated that Tesla's $5 billion investment in xAI could be a win-win situation. Analyst Gene Munster stated that xAI's recent round of financing valued the company at $24 billion. If Tesla invests $5 billion, the valuation will reach $29 billion, meaning Tesla will hold a 17% stake in xAI. Assuming no dilution and that xAI's valuation reaches $200 billion within the next five years, Tesla would achieve a 600% return on investment. Therefore, analyst Gene Munster believes Tesla should invest $20 billion in xAI to bring more returns to investors. Many supporters argue that xAI has invested substantial resources and achieved significant progress in specific AI model development. If Tesla can leverage xAI's existing achievements and resources to complement each other, it would create a win-win situation. After all, if xAI's resources and achievements do not belong to Tesla, they will eventually become resources utilized by other companies for survival
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