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Tesla Invests $2B in Musk's AI Venture xAI
29 Jan
Summary
- Tesla to invest $2 billion in Elon Musk's AI company xAI.
- Production plans for Cybercab robotaxi and Semi trucks are on track.
- Tesla reported strong Q4 earnings, exceeding revenue and EPS estimates.

Tesla announced a significant $2 billion investment in xAI, the artificial intelligence company founded by CEO Elon Musk. This strategic move highlights Tesla's evolving identity as an AI-focused entity, with its substantial valuation increasingly tied to its AI and autonomous driving endeavors.
Production timelines for Tesla's highly anticipated Cybercab robotaxi and Semi trucks are reportedly on schedule for the current year. This confirmation aims to bolster investor confidence, particularly as the company has previously missed delivery promises.
In the fourth quarter of 2025, Tesla reported revenue of $24.9 billion, surpassing analyst estimates. Adjusted earnings per share also exceeded targets, and the automotive gross margin, excluding regulatory credits, came in at 17.9%, significantly above expectations.




