India, July 14 -- Tesla Inc. (TSLA) shares climbed 5 percent on Monday after CEO Elon Musk announced plans to hold a shareholder vote on whether the company should invest in his artificial intelligence startup, xAI.

The proposal, disclosed on Musk's social media platform X, follows a recent report that SpaceX another Musk-led enterprise will invest $2 billion in xAI's latest fundraising round.

Musk stated that he supports the investment, adding, "If it were up to me, Tesla would have invested in xAI long ago." He emphasized that the decision must be made by shareholders due to Tesla's status as a public company.

Although Musk dismissed the idea of a merger between Tesla and xAI, the two companies are already closely aligned. xAI's Grok c...