Key Points
- Tesla will invest $2 billion in Elon Musk’s artificial intelligence company, xAI.
- The company says production of its Cybercab robotaxi and Semi truck is on track for this year.
- The move is part of a broader pivot by Tesla from a car company to an AI and robotics company.
- Tesla’s fourth-quarter earnings and revenue both beat Wall Street’s expectations.
Tesla is doubling down on its artificial intelligence ambitions, announcing on Wednesday that it will invest $2 billion in CEO Elon Musk’s AI company, xAI. The move is a clear signal that Tesla is serious about its pivot from a car company to an AI and robotics powerhouse.
The investment is expected to bolster the company’s self-driving and robotics projects. At the same time, Tesla reassured investors that its production plans for the futuristic Cybercab robotaxi and the all-electric Semi truck are on track for this year.
This is a crucial bit of news for a company that has a long history of missing the ambitious deadlines set by its CEO. Investors have been waiting for years for a widespread rollout of Tesla’s robotaxi service, and this latest announcement is a sign that it might finally be getting closer.
The focus on AI and robotics comes as Tesla’s core business of selling cars is facing some serious headwinds. The company is dealing with slowing sales, the loss of a key U.S. tax credit, and growing competition from other automakers.
Despite these challenges, Tesla’s fourth-quarter earnings report was a bright spot. The company beat Wall Street’s expectations for both revenue and profit, and its automotive gross margin was also stronger than expected.
For now, investors seem to be buying into Musk’s vision. The company’s stock was up about 3.4% in extended trading after the news. But the pressure is on for Tesla to start turning its AI promises into real, revenue-generating products.
