Tesla Shareholders Didn’t Approve of Investment in Musk’s xAI

A Tesla Inc. shareholder proposal for the board to authorize an investment in xAI wasn’t approved, clouding prospects for the Elon Musk-led carmaker to take a stake in his artificial intelligence startup.

The nonbinding measure garnered 1.06 billion votes in favor of authorization, exceeding the 916.3 million that were against, Tesla disclosed in a late Friday regulatory filing. However, more than 473 million votes abstained — more than twice the number for any other proposal on this year’s proxy.

Tesla’s bylaws consider abstentions as votes against, so the measure did not pass. Since it was an advisory proposal, ...