Tesla's $2 Billion AI Investment: A Game-Changer in Autonomous Technology

Tesla has pledged a $2 billion investment in Elon Musk’s AI startup, xAI, emphasizing its push towards autonomy and robotics. Investors are keenly watching Tesla’s self-driving and robotaxi developments, while the company leverages lower-cost models to boost sales amid rising competition.

Tesla has announced a significant investment of approximately $2 billion in xAI, an artificial intelligence startup founded by Elon Musk, as it aims to enhance its capabilities in self-driving and robotics. This move strengthens the partnership between the companies and underscores Tesla's commitment to integrating AI into its future projects.

The announcement comes amid mixed financial signals. Tesla reported a revenue of $24.9 billion for the last quarter, surpassing the $24.79 billion projected by analysts. Despite this, the automotive giant faces challenges as competitors introduce newer, often cheaper, models. Additionally, the termination of a U.S. tax incentive for electric vehicles and Musk's controversial political statements have put pressure on Tesla.

Among investors, there's a focus on Tesla's advancements in Full Self-Driving and robotaxi developments. While timelines for the rollout of these technologies remain ambiguous, Tesla's strategic pricing adjustments for its Model 3 and Model Y could bolster its market share. Meanwhile, its energy storage business continues to thrive, with record deployments in the final quarter reinforcing its expansive energy agenda.

(With inputs from agencies.)