Tesla's AI Leap: Musk's $2 Billion Bet on xAI and the Future of Autonomous Vehicles

Tesla announces a $2 billion investment in Elon Musk's AI company, xAI, signaling a shift from electric vehicles to AI-driven ventures. Production of the futuristic Cybercab robotaxi is on track. With a substantial rise in capital expenditures, Tesla aims to maintain investor confidence and adapt to market challenges.

Tesla has announced a transformative $2 billion investment in its CEO Elon Musk's artificial intelligence firm, xAI. The strategic move marks a significant pivot for Tesla, traditionally known for its electric vehicles, towards becoming a leading AI-driven company. The announcement also confirmed that production plans for the much-anticipated Cybercab robotaxi remain on course for this year.

CEO Elon Musk's assurance is crucial amidst rising investor concerns, as Tesla's ambitious plans entail over $20 billion in capital expenditure this year. The firm aims to bolster its AI capabilities while managing competition from rival automakers introducing new models at competitive prices.

Meanwhile, Tesla's energy generation sector continues to shine, with revenues reaching record highs due to steady demand for grid-scale batteries. The company's shift towards AI, however, is not without challenges, including potential memory chip shortages that could impact future developments.

(With inputs from agencies.)