Tesla Directs Staff to Grok 4.5 as $200 Weekly AI Spending Cap Takes Effect

Tesla CEO Elon Musk directed staff to adopt Grok 4.5, the AI model from xAI, citing lower token costs. The directive follows Tesla's $200 weekly cap on external AI tools, effective Monday. The move coincides with Grok 4.5's release on Wednesday, developed to counter Anthropic's Claude Fable 5, as part of Musk's strategy of interconnecting his companies through shared technology.

Musk told staff to use Grok 4.5 wherever possible and asked engineers to email him directly with feedback on the model's performance, according to a memo reported by The Information.

Grok 4.5 Released Wednesday With Joint Development by Cursor

Grok 4.5 was released on Wednesday. The model was developed jointly with Cursor, the AI coding platform whose parent company SpaceX is acquiring in a deal valued at $60 billion. SpaceXAI described Grok 4.5 as optimized for engineering, coding, scientific work, and general productivity tasks.

Tesla Invested $2 Billion in xAI Earlier in 2026

Tesla announced a $2 billion investment in xAI earlier in 2026, which transferred to investment in SpaceX after the rocket manufacturer acquired the Grok parent earlier this year. xAI was subsequently renamed as SpaceXAI, and all AI-development efforts were compiled under the segment at SpaceX.

Musk's companies are tightly interconnected through talent sharing, technology transfers, financial investments, and joint projects. SpaceXAI's Grok powers in-car voice assistance in Tesla vehicles. SpaceX and Tesla are together developing a massive semiconductor fabrication called Terafab. Several Cybertrucks have been deployed at SpaceX factories.

TSLA Stock Falls 9% Year-to-Date

On Stocktwits, retail sentiment around TSLA stock stayed within the 'bullish' territory over the past 24 hours, while message volume remained at 'normal' levels. Sentiment around SpaceX remained 'bearish,' accompanied by 'extremely low' message volume.

TSLA stock has fallen 9% year-to-date. SPCX has fallen 10% since debuting on the Nasdaq last month.

FAQ

What did Elon Musk tell Tesla staff about Grok 4.5?

Elon Musk directed Tesla staff to shift toward using Grok 4.5 wherever possible, citing its significantly lower token costs compared to competing models, according to a memo reported by The Information. He also asked engineers to email him directly with feedback on the model's performance.

When did Tesla impose the AI spending cap?

Tesla imposed a $200 weekly cap on individual employee spending for external AI tools, effective Monday, according to The Information.

How much did Tesla invest in xAI?

Tesla announced a $2 billion investment in xAI earlier in 2026, which transferred to investment in SpaceX after the rocket manufacturer acquired the Grok parent earlier this year.