Elon Musk’s Tesla to invest $2B in xAI as EV maker’s

Elon Musk’s Tesla to invest $2B in xAI as EV maker’s

Tesla said Wednesday it had agreed to invest about $2 billion in Elon Musk’s artificial intelligence startup xAI, deepening ties between the firms as the automaker pitches itself as an autonomy and robotics-driven company.

Tesla’s shares had been up about 2% in prolonged buying and selling.

Musk has framed AI technology as central to his broader push to develop artificial intelligence that may help the automaker’s self-driving and robotics ambitions.

Tesla said Wednesday it had agreed to invest about $2 billion in Elon Musk’s artificial intelligence startup xAI, as Tesla reported decrease sales and revenue. GIAN EHRENZELLER/EPA/Shutterstock

The Austin, Texas-based company reported income of $24.9 billion for the three months ended December 31, down 3% however beating analysts’ common estimate of $24.79 billion, according to data compiled by LSEG. Profit plunged 61% to $840 million.

Wall Street expects the company to ship 1.77 million models in 2026, representing an 8.2% improve, according to Visible Alpha data.

Tesla’s car enterprise has been under pressure as rivals roll out newer fashions, often at decrease costs. A US tax incentive for electrical autos has also ended, and Musk’s far-right political rhetoric have alienated some prospects.

Investors have more and more centered on Musk’s push into self-driving technology and robotics, with many in search of proof factors that the autonomy story is shifting from promise to product.

Tesla has leaned on lower-priced “Standard” variations of its best-selling Model 3 and Model Y to entice more price-sensitive patrons, a strategy analysts count on will play a key position in 2026 deliveries development even if it pressures margins.

Investors have more and more centered on Musk’s push into self-driving technology and robotics. Tesla Optimus robots, above. Tesla

A Cybercab self-driving automotive. ZUMAPRESS.com

Some analysts view it as a deliberate trade-off to broaden the car fleet that can later generate higher-margin income from software.

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