The possibility of a merger between Tesla Motors and Elon Musk's AI startup xAI is evolving from market speculation to serious discussion.

On Sunday, SkyBridge Capital founder Anthony Scaramucci posted on social platform X that a merger between Tesla Motors and xAI "feels inevitable" as Musk accelerates the integration of AI into his business empire. This statement adds fuel to the already heating merger expectations.

Scaramucci's tweet came after news emerged of Tesla Motors shareholders submitting a formal proposal. The proposal reportedly urges Tesla Motors' board to authorize investment in xAI, marking the first time the capital connection between the two companies has been formally placed on the agenda.

Deeper signals are hidden within Tesla Motors' recently disclosed new ten-year compensation plan for Musk. According to Morgan Stanley analysis, the plan contains a key clause allowing performance target adjustments in the event of "significant" acquisitions, which is widely interpreted as paving the way for a potential future merger with xAI, making synergies between the two companies part of Tesla Motors' long-term strategy.

**Shareholder Proposal Fuels Merger Expectations**

The direct catalyst for linking Tesla Motors with xAI comes from investors themselves. According to Tesla Motors' proxy filing, 56-year-old Florida investor Stephen Hawk submitted a shareholder proposal recommending the company invest in xAI. This proposal will be voted on alongside Musk's controversial compensation plan at the company's annual shareholder meeting on November 6th.

Stephen Hawk stated in an email that his inspiration came from Musk's previous social media posts hinting at collaboration between both parties. He believes that "formally establishing this partnership is crucial for ensuring clear mutual interests for both sides."

In fact, Musk himself remains open to this idea. He has not only solicited fan opinions on the X platform but also told investors in July that "we will act according to shareholders' wishes." This makes the shareholder meeting vote results potentially a key step in determining the future relationship between the two companies.

**Musk's New Compensation Plan Signals Merger Possibilities**

For investors, what may be more substantively significant than the shareholder proposal is Musk's long-term compensation plan potentially worth up to $1 trillion.

Earlier this month, Morgan Stanley analysts led by Adam Jonas noted in a research report that the plan aims to address investor concerns about Musk dispersing his energy across other companies like xAI and SpaceX.

The report stated that Musk has clearly expressed his desire to hold at least 25% of Tesla Motors' equity to have veto power in corporate control changes, and the new plan provides an incentive pathway for this. More importantly, a supplementary clause regarding acquisitions in the plan has drawn significant market attention. The clause stipulates that "market capitalization and adjusted EBITDA milestone targets may be adjusted to account for Tesla Motors acquisition activities deemed to have a significant impact on milestone achievement."

Analysts believe this wording reserves flexible institutional space for future benefit integration between Tesla Motors and xAI. Morgan Stanley's report explicitly states this provides a clear "interface" for merger between the two companies, indicating such integration is already within Tesla Motors' long-term strategic considerations.

**Tesla Motors Market Value Could Reach $8.5 Trillion**

Market expectations for the merger are built on existing synergies between the two companies.

Musk has consistently positioned Tesla Motors as a "real-world artificial intelligence" company, with its core driving autonomous driving and Optimus humanoid robots. xAI's developed Grok large language model is currently integrated as an AI companion in Optimus and some Tesla Motors vehicles. Additionally, xAI purchases Tesla Motors' industrial batteries to power its data centers.

Some analysts believe the merger would unlock tremendous value. Renowned tech analyst and Deepwater Asset Management co-founder Gene Munster suggested earlier this month that combining Tesla Motors with xAI could help the former achieve a grand market capitalization target of $8.5 trillion.

Now, this view is becoming mainstream. With xAI's own valuation already exceeding $100 billion and seeking valuations as high as $200 billion, how to allow Tesla Motors shareholders to share in the massive returns from AI breakthroughs has become a key issue Musk needs to resolve.