Tesla Invests $2 Billion in Musk’s xAI Amid Strategic Pivot to AI and Robotics
Tesla has committed $2 billion to Elon Musk's artificial intelligence venture, xAI, through a Series E Preferred Stock purchase. The investment, finalized on January 16, 2026, deepens the synergy between Musk's enterprises and underscores Tesla's transition from an electric vehicle pure-play to an AI-driven conglomerate.
Production of the Cybercab robotaxi remains on schedule for 2026, with ambitions to deploy fully autonomous vehicles across 25-50% of the U.S. market by year-end. To accommodate growing priorities, Tesla will discontinue Model S and Model X production, repurposing factory space for humanoid robot manufacturing.
The company's energy division reported record revenue of $3.84 billion in Q4, marking a 25.5% annual increase. Capital expenditures are projected to surge beyond $20 billion in 2026, more than double 2025's $8.5 billion outlay.
