Musk's Attempt to Merge OpenAI with Tesla Revealed
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 07 2026
0mins
Source: seekingalpha
- Merger Proposal: Former OpenAI board member Shivon Zilis testified that Elon Musk proposed to include OpenAI CEO Sam Altman on Tesla's board to facilitate a merger, highlighting Musk's strong desire for control in the AI sector.
- Legal Action: Musk is suing OpenAI and its executives for over $13 billion, claiming he was misled into believing OpenAI would remain a nonprofit when he provided $38 million in startup funding, a claim that could significantly impact OpenAI's operational model.
- Board Discussions: Zilis noted extensive discussions within the board between 2017 and 2018 regarding OpenAI's corporate structure, reflecting differing views on how to transition OpenAI into a for-profit entity, which may influence future governance structures in AI companies.
- IPO Prospects: Both OpenAI and its parent company SpaceX are reportedly preparing for massive IPOs later this year, indicating that despite facing legal challenges, OpenAI is still seeking market support to drive its business expansion.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 375.530
Low
25.28
Averages
401.93
High
600.00
Current: 375.530
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Uncertain Future Outlook: While Musk may regain his trillionaire status, the volatility in SpaceX and Tesla's stock prices, along with uncertainties regarding future profitability, may lead investors to adopt a cautious stance in the short term.
See More
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See More
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- SpaceX IPO Achievement: SpaceX raised $85.7 billion in its IPO on June 12, exceeding the expected $75 billion, yet the company anticipates a negative free cash flow of $105 billion by 2029, highlighting challenges in achieving profitability.
- Tesla Market Performance: Tesla experienced sales declines in 2024 and 2025, and while there was a rebound in Q1 2026, profit margins have not returned to previous levels, reflecting the impact of intensified competition and market pressures on its business.
- Future Outlook and Risks: Although Musk aims to drive Tesla's growth through new technologies and products like full self-driving and robotics, investor confidence in its stock needs to be restored through the upcoming Q2 earnings report, as current market sentiment remains cautious towards Tesla.
See More
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- Regulatory Change: The U.S. Department of Transportation plans to amend federal vehicle safety standards by proposing the removal of manual brake control requirements for fully driverless vehicles, which could streamline the market entry process for companies developing purpose-built robotaxis.
- Market Impact: This proposal will only apply to vehicles designed exclusively for autonomous operation, while conventional vehicles will still be required to have brake pedals, ensuring a diverse and safe market as existing standards for vehicles combining automated and human driving remain unchanged.
- Beneficiaries: Companies like Waymo (owned by Alphabet), Amazon's Zoox, and Tesla will benefit from this change, as it facilitates the development of dedicated autonomous vehicles that do not require steering wheels or pedals, thereby advancing robotaxi services.
- Future Outlook: This proposal is part of a broader initiative by the administration to update vehicle regulations for autonomous driving technology; while it does not alter existing braking performance standards, it may lead to further regulatory changes that could accelerate industry growth.
See More
