Tesla announced a massive capital injection into xAI, Elon Musk's AI startup, which came as a surprise to the market after a failed shareholder vote in November. The deal involves the acquisition of preferred shares and the signing of a framework agreement that will allow the automaker to integrate advanced neural networks into its physical products. This was reported by Bloomberg, writes UNN.
Details
The decision to invest $2 billion underscores a shift in Tesla's priorities: amidst a 16% drop in EV sales in the fourth quarter, the company is betting on autonomy and Optimus robots. The use of xAI technologies is expected to accelerate the development of robotaxis, which are planned to be launched in Las Vegas, Miami, and Phoenix in the first half of 2026. Although shareholders previously did not officially approve this step, Tesla's management decided to act, as they consider AI a key factor for the brand's future survival.
Financial performance and market reaction
Despite an overall decline in annual revenue for the first time in the company's history, Tesla reported earnings of 50 cents per share, exceeding analysts' expectations. This helped the stock rise 3% in extended trading. The positive momentum was driven by the success of the Full Self-Driving (FSD) subscription model, whose user base grew by 40%, reaching 1.1 million people.
Investors perceived the news of the alliance with xAI as a signal for the active implementation of driverless autonomous technologies, which have already begun testing in Austin. However, skeptics point to the risks of conflicts of interest due to Musk's role in the Trump administration and the cancellation of government subsidies, which were previously an important source of income for the automaker.